Question
Michael's Mechanical sells 12,000 jettison machines annually. Each machine costs Michael's $4,000 to purchase, inventory carrying costs are 36 percent of the purchase price, and
Michael's Mechanical sells 12,000 jettison machines annually. Each machine costs Michael's $4,000 to purchase, inventory carrying costs are 36 percent of the purchase price, and the cost of placing an order with its supplier is $150. What is the EOQ? Round your answer to the nearest whole number. machines
What is the total inventory cost at the EOQ level?
Do not round intermediate calculations. Round your answer to the nearest dollar. $
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Pricing And Hedging Financial Derivatives A Guide For Practitioners
Authors: Leonardo Marroni, Irene Perdomo
1st Edition
1119953715, 978-1119953715
