Question: E 2 - 3 Westbrook Co . predicts that it will use 2 2 5 , 0 0 0 gallons of material during the year.

E2-3 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.

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