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Accounting

New England Co. predicts that it will use 360,000 gallons of material during the year. The material is expected to cost $5 per gallon. It anticipates that it will cost $72 to place each order. The annual carrying cost is $4 per gallon.

a. Determine the most economical order quantity by using the EOQ formula.
b. Determine the total cost of ordering and carrying at the EOQ point.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M940754

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