Question
Michael's Mechanical sells 24,000 jettison machines annually. Each machine costs Michael's $8,000 to purchase, inventory carrying costs are 36 percent of the purchase price, and
Michael's Mechanical sells 24,000 jettison machines annually. Each machine costs Michael's $8,000 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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Financial And Managerial Accounting
Authors: John J. Wild
9th Edition
1260728773, 9781260728774
