(Answered) Green thumb garden centers sells 240000 bags of lawn

Finance

Green Thumb Garden Centers sells 240,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,200 bags. Each bag costs Green Thumb $4, inventory carrying costs are 20 percent, and the cost of placing an order with its supplier is $25.

(a) What is the economic ordering quantity?

(b) What is the total inventory cost at the EOQ level?

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