Friendly Home Services expects sales of baskets to be $125,000 this year, an ordering cost of $75.00 per order, and carrying costs of $3.00 per basket. The price of a basket is $25.

a. What is the economic ordering quantity?

Economic ordering quantity (EOQ) _____ baskets

b. How many orders will be placed during the year?

Number of orders_____

c. What will the average inventory be?

Average inventory ______ baskets

d. What is the total cost of ordering and carrying inventory?

Total costs ________