Duck Group Painting and Remodeling uses 760 paint brushes a month. The brushes a

Question

Duck Group Painting and Remodeling uses 760 paint brushes a month. The brushes are purchased at $2 each. Annual carrying costs per brush are estimated to be 30 percent of cost, and ordering costs are $20 per order. The project manager has been using an order size of 1,500 paint brushes.

What additional annual cost is the shop incurring by staying with this order size? (Round your intermediate calculations and final answer to 2 decimal places. )

Other than cost savings, what benefit would using the optimal order quantity yield? (Round your answer to the nearest whole percent. Omit the "%" sign in your response.)

Duck Group Painting and Remodeling uses 760 paint brushes a month. The brushes are purchased at $2 each. Annual carrying costs per brush are estimated to be 30 percent of cost, and ordering costs are $20 per order. The project manager has been using an order size of 1,500 paint brushes.

Explanation / Answer

(780/1500)*100=52% of storage will be needed only

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