EOQ and changing demand Last year Dayle Company sold 183,750 portable telephones by mail order at $57.50 each. Management estimates that if the selling price does not change, demand for the telephones will increase 20 percent in the current year. Each telephone costs $25. It costs $400 to place an order and inventory carrying cost per phone is $2.50.

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REQUIRED Calculate the economic order quantity and the number of times orders will have to be placed during the year.