We need 3,000 units per year at a unit price of $25 and at a cost of

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We need 3,000 units per year at a unit price of $25 and at a cost of $75 per order, with a carrying cost of 20%.

a. What is the EOQ size of each order?

b. What is the annual order cost?
c. What is the total annual inventory cost?
d. What is the annual inventory carrying cost?

e. How many orders per year will be made?

Related Book For answer-question

Intermediate Financial Management

ISBN: 978-1111021573

10th Edition

Authors: Brigham, Daves

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Posted Date: Jun 27, 2019 07:58 AM

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We need 3,000 units per year at a unit price of $25 and at a cost of

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Annual demandD 3000 units Unit priceP 25 Ordering costS 7... View the full answer

Intermediate Financial Management

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