Question: 1. Braebner Corp. orders 500,000 microchips per year at an average cost of $130. The carrying cost of each chip is $25, and each order

1. Braebner Corp. orders 500,000 microchips per year at an average cost of $130.  The carrying cost of each chip is $25, and each order costs $150.  Compute Braebner's EOQ.

2.  Haverly, Inc. has borrowed $100,000. The loan is subject to a 10% compensating balance and has an effective interest rate of 13.33%. Calculate the quoted interest rate on the loan. (Round to nearest whole percent)

 

 

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