Optimal Quantity of Widgets
Not what you're looking for?
A firm sells 25,000 widgets annually that it purchases from a widget supplier for
$10 each. It costs the firm $62.50 in administrative costs to place an order for the
widgets and, on the average, costs $0.50 in carrying costs to maintain a widget in
inventory. What is the optimal quantity of widgets to be purchased in each order
from the widget supplier?
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to answer what is the optimal quantity of widgets to be purchased in each order from the widget supplier.
Solution Preview
A firm sells 25,000 widgets annually that it purchases from a widget supplier for
$10 each. It costs the firm $62.50 in administrative costs to ...
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Basics of corporate finance
These questions will test you on your knowledge of finance.