Question: PC Calculators sell calculators that it purchases for $15 each. It costs PC $60 each time calculators are ordered, and carrying costs are 20% of

PC Calculators sell calculators that it purchases for $15 each. It costs PC $60 each time calculators are ordered, and carrying costs are 20% of the calculator's purchase price. Annual demand is 100,000 calculators.

(a) Compute the EOQ.

(b) Compute the inventory costs if PC orders are at

(i) the EOQ amount,

(ii) 1000 calculators,

(iii) 2500 calculators.

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