PC Calculators sells calculators that it purchases for $15 each. It costs PC $60 each time calculators

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PC Calculators sells calculators that it purchases for $15 each. It costs PC $60 each time calculators are ordered, and carrying costs are 20 percent of the calculator’s purchase price. Annual demand is 100,000 calculators.

(a) Compute the EOQ.

(b) Compute the inventory costs if PC orders (i) the EOQ amount, (ii) 1,000 calculators, and (iii) 2,500 calculators.

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CFIN

ISBN: 978-1305666870

5th edition

Authors: Scott Besley, Eugene Brigham

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Question Posted: Feb 21, 2020 09:56 AM

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PC Calculators sells calculators that it purchases for $15 each. It costs PC $60 each time calculators

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CFIN

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