Determining EOQ by Formula. Brady Sporting Goods, Incorporated, buys baseballs at $20 per diven from its wholesaler. Brady will sell 36,000 haschalls evenly throughout the year. Bradly desires a 10 percent return on its inventory investment. In addition, rent, insurance, and taxes for baseballs per dozen in inventory are $.40. The administrative cost involved in handling each purchase order is $10.

a. Use the formula to calculate EOQ

b. Assuming that Brady ordered in sizes uf 800 dozen evenly throughout the year, calculate the total annual inventory expenses to sell 36000 dozen haschalls. (AICPA