Media moguls mampm normally sells 240000 units per year it, Ask an Expert

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Media Moguls (M&M) normally sells 240,000 units per year. It costs M&M $52 to purchase each unit, the fixed cost of ordering is $260, and the carrying costs equal 15 percent of the unit's purchase price.

(a) What is the EOQ?

(b) How many orders should M&M place each year?

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