Economic Order Quantity. Micro-Encapsulator Corp. (MEC) expects to sell 7,200 miniature home encapsulators this year. The cost

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Economic Order Quantity. Micro-Encapsulator Corp. (MEC) expects to sell 7,200 miniature home encapsulators this year. The cost of placing an order from its supplier is $250.

Each unit costs $50 and carrying costs are 20 percent of the purchase price.

a. What is the economic order quantity?

b. What are total costs—order costs plus carrying costs—of inventory over the course of the year?

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Study Guide To Accompany Fundamentals Of Corporate Finance

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Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 05, 2024 02:02 AM

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Economic Order Quantity. Micro-Encapsulator Corp. (MEC) expects to sell 7,200 miniature home encapsulators this year. The cost

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Study Guide To Accompany Fundamentals Of Corporate Finance

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