Question: Plug in the data above into the EOQ formula (above). Most importantly, try to explain your result. EOQ helps to determine the importance of order

Plug in the data above into the EOQ formula (above). Most importantly, try to explain your result.

EOQ helps to determine the importance of order frequency and quantity. (Let's see how much we can order and still be cost effective. This requires the square root function as shown below.) Formula: (2DB) / (IC) where: | B = $50: Ordering cost ($/order) (or setup cost) D = 400: Annual demand or sales volume (# of units) I= $10: Cost or value of 1 unit ($/unit) C=35%: Inventory carrying cost (expressed as an annual % of inventory value) TC Annual Cost ($) EOQ ICC OC

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