A large consulting firm orders photocopying paper by the carton. The firm pays a $30 delivery charge

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A large consulting firm orders photocopying paper by the carton. The firm pays a $30 delivery charge on each order. The total cost of storing the paper, including forgone interest, storage space, and deterioration comes to about $1.50 per carton per month. The firm uses about 1,000 cartons of paper per month.
a. Fill in the following table:

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b. Calculate the economic order quantity. Is your answer consistent with your findings in part (a)?
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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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