Solutions to Chapter 4 Problems

Since the order size of 400 watches gives us the lowest total inventory cost, it is the economic order quantity. 7-7. Thus, the bond has a higher yield than the Treasury bill. 7-8 (a) Additional sales $200,000. Accounts un-collectible (10% of sales) 20,000. Incremental revenue $180,000. Production and selling cost (80% of sales) 160,000 ................
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