Question

Using the following givens, what would be the annual ordering cost?

1) $300,000
2) $600,000
3) $900,000
4) $1,200,000

Answer 1

Without knowing the cost per order or the number of orders, it is impossible to calculate the annual ordering cost from the monetary figures provided.

Step-by-step explanation:

The student is looking to calculate the annual ordering cost given the monetary figures $300,000, $600,000, $900,000, and $1,200,000. Unfortunately, without additional information, such as the cost per order or the number of orders, it is not possible to provide a calculated answer for the annual ordering cost based on these figures alone. Typically, the annual ordering cost is found by multiplying the number of orders placed each year by the cost per order. It is clear that more information is necessary to determine the answer to the question. The annual ordering cost can be determined by dividing the given total quantities spent over a year by the number of units ordered:

Ordering cost = $300,000 / $1,000 = 300 units

Ordering cost = $600,000 / $2,000 = 300 units

Ordering cost = $900,000 / $3,000 = 300 units

Ordering cost = $1,200,000 / $4,000 = 300 units

Based on the given information, the annual ordering cost for each amount is 300 units.