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X Corporation determines the manufacturing cost per order of a raw materials is $25. The company expects to use $50,000 of this materials in the

X Corporation determines the manufacturing cost per order of a raw materials is $25. The company expects to use $50,000 of this materials in the coming year. The carrying charge is 10% of inventory.

Required: Determine the following:

  1. Economic Order Quantity
  2. Number of times the raw materials be ordered in the coming year.
  3. Average inventory
  4. Total relevant inventory cost at economic order quantity

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