Question: When Unit cost = 3 0 EOQ = Sqroot { ( 2 * 1 2 0 * 2 0 ) / ( 0 . 2

When Unit cost =30
EOQ = Sqroot{(2*120*20)/(0.25*30)}
=25.3 Units
When Unit cost =28.5
EOQ = sqroot{(2*120*20)/(0.25*28.5)}
=26 units
This would be adjusted to 50 Units
When unit cost =27
EOQ = Sqroot{(2*120*20)/(0.25*27)}
=26.67 Units
This would be adjusted ro 100 units
When EOQ =25.3 Units
Total cost = Ordering cost + Holding cost + Product cost
=(120/25.3)*20+(25.3/2)*(0.25*30)+30*120
= $94.86+ $94.88+ $3600
= $3789.74
When EOQ =26 units
=(120/26)*20+(26/2)*(0.25*28.5)+28.5*120
= $92.31+ $92.63+ $3420
= $3604.94
When EOQ =26.67 Units
=(120/26.67)*20+(26.67/2)*(0.25*27)+27*120
=89.99+90.01+3240
= $3420
Order quantity recomended would 100 units at $27 per unit

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