Question
Michael's Mechanical sells 6,000 jettison machines annually. Each machine costs Michael's $2000 to purchase, inventory carrying costs are 30% of the purchase price, and the
Michael's Mechanical sells 6,000 jettison machines annually. Each machine costs Michael's $2000 to purchase, inventory carrying costs are 30% of the purchase price, and the cost of placing an order with its supplier is $120. (a) What is the EOQ approx (b) What is the total inventory cost at the EOQ?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77861671, 978-0077861674
