Question
michael's Mechanical sells 6,000 jettison machines annually. Each machine costs Michael's $2,000 to purchase, inventory carrying costs are 45 percent of the purchase price, and
michael's Mechanical sells 6,000 jettison machines annually. Each machine costs Michael's $2,000 to purchase, inventory carrying costs are 45 percent of the purchase price, and the cost of placing an order with its supplier is $120. a) What is the EOQ? b) What is the total inventory cost at the EOQ level?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
