The Sikki-Nikki Company manufactures aspirin to sell to the opera houses of Loudsville, N.Y. In order to analyze the costs of carrying and ordering the aspirin, management collected the following data: lop85

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Clerical costs Stationery Desired annual rate of return on investment Postage... Personal property taxes Depreciation on clerical machines Warehousing or storage... Insurance...... Telephone bill.. Storeroom supervisor Material cost per bottle $2.60 per purchase order $4.80 for four purchase orders 8% S.25 per purchase order $.03 per bottle per month $115 per year $60 per 6 months $.50 per bottle per year $.40 per purchase order $400 every 2 weeks $3.00 8,000 Annual required bottles.. Required: Determine the economic order quantity using the formula method.