=+17-19 KK EOQ for manufacturer OBJECTIVE 2 Landsborough Lawns Ltd, which produces lawn mowers, purchases 27500 units of a rotor blade part each year at a cost of $35 per unit. Landsborough Lawns requires a 13% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage and so on) is $9.50 per unit per year. The relevant ordering cost per purchase order is $125.

Required 1 Calculate Landsborough Lawns’s EOQ for the rotor blade part.