Problemcheesburger and taco company purchases 7899 boxes of, Ask an Expert

Finance

Problem:

Cheesburger and Taco Company purchases 7,899 boxes of cheese each year. It costs $21 to place and ship each order and $2.35 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

Required:

Question: What is the average inventory held during the year?

250 units
188 units
987 units
376 units

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163401

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