Question
Billy Ray is selling Skull Candy headphones on Ebay and orders his inventory from a wholesaler in Los Angeles. These are the facts: Demand is
Billy Ray is selling Skull Candy headphones on Ebay and orders his inventory from a wholesaler in Los Angeles.
These are the facts:
Demand is 10,000 per unit a year
Order costs are $40 per order
Carrying costs are .20 or 20%
Value per unit. is $100
Questions:
a. What is the Economic Order Quantity? (EOQ)
b. What is the total of carrying costs and order costs at the EOQ order amount?
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Fundamentals Of Corporate Finance
Authors: Berk, Peter DeMarzo, Jarrad Harford
3rd Global Edition
1292018402, 9781292018409
