Question a medical supply store wants to know the number of, Ask an Expert

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Question: A medical supply store wants to know the number of stethoscopes it should purchase to minimize annual costs. Currently, the store is ordering 1,000 stethoscopes per order. Using the data points below, determine EOQ and determine the savings the store would have if it changed its order quantity for stethoscopes to the EOQ. Can you explain your answer and show your work

Purchase Cost = $65

Annual Demand = 15,000

Carrying Cost = 10% per item

Setup Cost = $250

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92573692

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