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## Accounting

 Accounting Basics Cost Accounting Financial Accounting Managerial Accounting Auditing Taxation

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.

Accounting Basics, Accounting

• Category:- Accounting Basics
• Reference No.:- M940754

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