Refer to the data for Ranger Company below.
Ranger Company purchases 17,280 units of Product Beta each year in lots of 864 unit's per-order. The cost of placing one order is $10, and the cost of carrying one unit of product in inventory for a year is $6.
Required:
1. What is the EOQ for Beta?
2. How many orders for Beta will Ranger place per year under the EOQ policy?
3. What is the total ordering cost of Beta for a year under the EOQ policy?
4. What is the total carrying cost of Beta per year under the EOQ policy?
5. What is the total cost of Ranger's inventory policy for Beta per year under the EOQ policy?