Question
Michaels Mechanical sells 8,000 jettison machines annually. Each machine costs Michaels $3,000 to purchase, inventory carrying costs are 55 percent of the purchase price, and
Michaels Mechanical sells 8,000 jettison machines annually. Each machine costs Michaels $3,000 to purchase, inventory carrying costs are 55 percent of the purchase price, and the cost of placing an order with its supplier is $130. a. What is the EOQ? b. What is the total inventory cost at the EOQ level?
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. Mcguigan, William J. Kretlow
9th Edition
032416470X, 9780324164701
