Question
Roybow Corporation sells lawn mowers that cost $175 to purchase and prepare for sale. Annual sales are 7,000 mowers, carrying costs are 20 percent of
Roybow Corporation sells lawn mowers that cost $175 to purchase and prepare for sale. Annual sales are 7,000 mowers, carrying costs are 20 percent of inventory costs, and Roybow incurs a cost of $35 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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Contemporary Financial Management
Authors: R. Charles Moyer, James R. Mcguigan, William J. Kretlow
9th Edition
032416470X, 9780324164701
