A birdfeeder is one of the top-selling items at the Museum of Nature’s gift shop. Louise, the museum’s manager, estimates that weekly sales to be 20 birdfeeders. The purchase cost of birdfeeders is $16 per unit, and Louise estimates that it costs 25% of an item’s value to hold one unit in inventory for a year. The gift shop is open for 48 weeks per year. The cost of placing an order is estimated to be $120 per order and the shipments are carried by the birdfeeder manufacturer. According to the current inventory policy, Louise is placing the same order every four months, whenever the inventory level hits zero [Assume: 1 year = 12 months]. Required:
a. What is the total annual cost of this current inventory policy?
b. What is the economic order quantity (EOQ) for Louise to order?
c. What is the difference in the total annual cost between the current inventory policy and the new inventory policy that utilizes EOQ?
d. What will be the new EOQ if ordering cost is dropped to $30/order? How many months will there be in between consecutive orders?

The chromosome manufacturing company produces two products, x and y. the company president, jean mutation, is concerned about the fierce competition in the market for product x. she notes that competitors are selling x for a price well below chromosome's price of $13.50. at the same time, she notes that competitors are pricing product y almost twice as high as chromosome's price of $12.50.ms. mutation has obtained the following data for a recent time period: product x product y number of units 11,000 3,000 direct materials cost per unit $3.23 $3.09 direct labor cost per unit $2.22 $2.10 direct labor hours 10,000 3,500 machine hours 2,100 1,800 inspection hours 80 100 purchase orders 10 30ms. mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. the overhead costs for this time period consisted of the following items: overhead cost item amount inspection costs $16,200 purchasing costs 8,000 machine costs 49,000 total $73,200using direct labor hours to allocate overhead costs determine the gross margin per unit for product x. choose the best answer from the list below.a. $1.93b. $3.12c. $7.38d. $2.43e. $1.73using activity-based costing for overhead allocation, determine the gross margin per unit for product y. choose best answer from list below.a. $10.07b. ($2.27)c. ($5.23)d. ($7.02)e. $7.02