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Broadbent Industries carries a part that is popular in the manufacture of automatic sprayers. Demand for this part is 4,000 units per year; order costs

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Broadbent Industries carries a part that is popular in the manufacture of automatic sprayers. Demand for this part is 4,000 units per year; order costs amount to $30 per order, and carrying costs total $1.50 per unit. The company is considering the implementation of an economic order quantity model in an effort to better manage its inventories. REQUIRED: A. Compute the economic order quantity (EOQ). B. Compute the annual relevant total costs (ordering costs and carrying costs) if Broadbent follows the EOQ policy

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