Tops Ltd, a regional supermarket chain, orders 320 000 cans of frozen apple juice per year from a distributor. A can of apple juice delivered to Tops Ltd central warehouse costs NS0,50, including freight charges. The company borrows funds at a 10% interest rate to finance inventories. Tops Ltd's purchasing agent calculates that it costs NS15 (variable cost) to place an order for frozen juice and that the variable annual holding expense (insurance, electricity, and handling) is NS0, 10 for each can of juice. Calculate the EOQ. Answer