contestada

Mayzie's Masks has a monthly demand of 250 masks. It costs $100 to place an order
and the holding cost is 20% of the cost of a mask, which is $30. What is the total
cost?

Respuesta :

moonsgoodvibes

Answer:

$951

Step-by-step explanation:

EOQ = Sqroot{(2*Annual Demand*Ordering cost)/Holding cost}

= Sqroot{(2*250*12*100)/(0.2*30)}

= 317 Units Approximately

Total Holding cost = Average Inventory * Holding cost per unit

= (EOQ/2)*Holding cost per unit

= (317/2)*(0.2*30)

= $951

facundo3141592

So by knowing the holding cost and the percentage that it represents, we want to find the total cost of the masks. We will find that the cost is $150.

We know that the holding cost is 20% of the cost of a single mask, so if the cost of a mask is C, the holding cost is:

(20%/100%)*C = 0.2*C

And we know that this is equal to $30, so we get:

0.2*C = $30

Now we can solve this for C, the total cost of a mask:

C = $30/0.2 = $150.

If you want to learn more, you can read:

https://brainly.com/question/14094934

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