Question
15-15 Michaels Mechanical sells 6,000 jettison machines annually. Each machine costs michaels $2,000 to purchase, inventory carrying costs are 45 percent of the purchase price,
15-15
Michaels Mechanical sells 6,000 jettison machines annually. Each machine costs michaels $2,000 to purchase, inventory carrying costs are 45 percent of the purchase price, and the cost of placing an order with its supplier is $120. (a) What is the EOQ? (b) What is the total inventory cost at the EOQ level?
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
