Problemxyz corp inc is experiencing some inventory control, Ask an Expert

Accounting

Problem:

XYZ Corp, Inc. is experiencing some inventory control problems. The manager currently orders 10,000 units four times each year to handle annual demand of 40,000 units. Each order costs $40 and each unit costs $1.25 to carry.
The manager maintains a safety stock of 200 units.

Required:

Question: Calculate the economic ordering quantity (EOQ).

Note: Please provide through step by step calculations.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170509

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