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The Dartmouth Bookstore sells 300 notebooks per term. Each notebook carries a variable cost of $0.50, while the fixed cost to restock the shelves amounts
The Dartmouth Bookstore sells 300 notebooks per term. Each notebook carries a variable cost of $0.50, while the fixed cost to restock the shelves amounts to $4.00. The carrying charge of one notebook tied in the inventory is $0.08 per $/ term. a. Calculate the EOQ. b. Calculate the total relevant cost associated with the EOQ calculated in the previous part. Calculate the best order quantity now considering a 40% discount on orders greater than 300 . Now assume that the unit cost of the same notebook increases from $0.50 to $0.60. Calculate the new EO
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