If a drywall company uses 200 sheets of drywall a week and the price of drywall is $10 a sheet, delivery cost is $60 and two (2) days and the storage cost is 30%. presume the workweek is 5 days a week and there are 52 weeks in the work year.

a) what is the economical order quantity?

b) how much annually does the company spending on setup charges consumption, and storage cost of drywall?

Phoenix guitars is interested in pursuing backward integration to take greater ownership of the extraction of raw materials and production of components used in its signature line of guitars. although this approach would lower the overall cost of producing a guitar, the costs associated with producing electronic pickupsfor sound amplification are far greater than those associated with sourcing pickups from a reliable supplier. which of the following approaches is likely to produce superior results? a) invest in vertical integration despite the cost of producing pickups. b) abandon the idea of vertical integration entirely. c) pursue taper integration. d) introduce a budget line of guitars to diversify the firm's offerings.