Find out the annual ordering cost, Accounting Basics

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Find out the annual ordering cost

Discuss the below:

Q: Joe Henry's machine shop uses 2500 brackets during a year. The following information is known. Annual Demand: 2500; Holding cost per bracket per year $1.50; Order cost per order: $18.75.

a. Determine the EOQ

b. What is the annual holding cost?

c. What is the annual ordering cost?

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Accounting Basics: Find out the annual ordering cost

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Accounting Basics: Find out the annual ordering cost

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