(EOQ, number of orders) Marianne May is a wholesale distributor of videotapes. She sells approximately 9,000 tapes...

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(EOQ, number of orders) Marianne May is a wholesale distributor of videotapes. She sells approximately 9,000 tapes every year. She estimates that it costs $.25 per tape to carry inventory for 12 months and it costs $15 each time she orders tapes from the factory.

a. How many tapes should she order to minimize costs?

b. Based on the order size computed in part

a, how many orders will she need to place each year?

c. Based on your answer to part

b, at what time interval will Marianne be placing orders for videotapes?

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Financial Accounting

ISBN: 9780070891739

1st Canadian Edition

Authors: Robert Libby

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