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A. What is the EOQ for a firm that sells 5,000 units when the cost of placing an order is $5 and the carrying cost are $3.50 per unit?

B. How long will the EOQ last? How many orders are placed annually?

C. As a result of lower interest rate, the financial manager determines the carrying costs are now $1.80 per unit. What are the new EOQ and annual number of objects?

Financial Management, Finance

  • Category:- Financial Management
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