Scenario:

The John Equipment Company estimates its carrying cost at $15\%$ and its ordering cost at $$9$ per order. The estimated annual requirement is $48,000$ units at a price of $$4$ per unit.

Required:

What is the most economical number of units to order?

How many orders should be placed in a year?

How often should an order be placed?

What would be the EOQ is the selling price of the product were $$8?$

Describe, in words, the process for this calculation. Show your work.

Upload your answers to complete the assignment.