Question
Michael's Mechanical sells 15,000 jettison machines annually. Each machine costs Michael's $5,000 to purchase, inventory carrying costs are 36 percent of the purchase price, and
Michael's Mechanical sells 15,000 jettison machines annually. Each machine costs Michael's $5,000 to purchase, inventory carrying costs are 36 percent of the purchase price, and the cost of placing an order with its supplier is $150.
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What is the EOQ? Round your answer to the nearest whole number.
machines
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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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ISE Real Estate Finance And Investments
Authors: Jeffrey Fisher William B. Brueggeman
17th International Edition
1264892888, 9781264892884
