How many orders will be placed during the year, Financial Accounting

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How many orders will be placed during the year

Problem

Fisk Corporation is trying to improve its inventory control system and has installed an online system at its retail stores. Fisk anticipates sales of 73,500 units per year. an ordering cost of $12 per order, and carrying costs of $1.6 per unit.

1. What is the economic ordering quantity?
2. HOW many orders will be placed during the year?
3. What will the average inventory be?
4. What is the total cost of inventory expected to be?

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Financial Accounting: How many orders will be placed during the year

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