1- Extended Play Stereo, Inc., sells 750 Super Power amplifiers per year and expects sales to continue...
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1- Extended Play Stereo, Inc., sells 750 Super Power amplifiers per year and expects sales to continue at that rate. The holding cost is 22 percent of the unit cost per year, and the amplifiers cost $180 each. The cost to process a purchase order is $15.
a. What is the EOQ?
b. How much will the company spend each year to order and hold Super Power amplifiers?
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