Westbrook Co. predicts that it will use 225,000 gallons of material during the year. The material is

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Westbrook Co. predicts that it will use 225,000 gallons of material during the year. The material is expected to cost $10 per gallon. It anticipates that it will cost $40 to place each order. The annual carrying cost is $2 per gallon.

a. Determine the most economical order quantity by using the EOQ formula.

b. Determine the annual order and carrying costs at the EOQ point.

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Principles of Cost Accounting

ISBN: 978-1305087408

17th edition

Authors: Edward J. Vanderbeck, Maria Mitchell

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Question Posted: Mar 31, 2015 11:31 AM

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Westbrook Co. predicts that it will use 225,000 gallons of material during the year. The material is

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a EOQ 2 CN K 2 X 40 X 225000 2 18000000 2 9000000 3...View the full answer

Principles of Cost Accounting

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