Question
Roybow corporation sells lawn mowers that cost $160 each to purchase and prepare for sale. Annual sales are 5,000 mowers, carrying costs are 20 percent
Roybow corporation sells lawn mowers that cost $160 each to purchase and prepare for sale. Annual sales are 5,000 mowers, carrying costs are 20 percent of inventory costs, and RoyBow incurs a cost of $32 each time an order is placed. (A) What is the EOQ for the mowers? (B) What will be the total inventory costs if the EOQ amount is ordered?
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Financial and Management Accounting
Authors: Pauline Weetman
7th edition
1292086599, 978-1292086590
