Westbrook Co. predicts that it will use 225,000 gallons of material during the year. The material is
Question:
Westbrook Co. predicts that it will use 225,000 gallons of material during the year. The material is expected to cost $10 per gallon. It anticipates that it will cost $40 to place each order. The annual carrying cost is $2 per gallon.
a. Determine the most economical order quantity by using the EOQ formula.
b. Determine the annual order and carrying costs at the EOQ point.
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a EOQ 2 CN K 2 X 40 X 225000 2 18000000 2 9000000 3...View the full answer
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Related Book For 
Principles of Cost Accounting
ISBN: 978-1305087408
17th edition
Authors: Edward J. Vanderbeck, Maria Mitchell
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