Solved: It costs 30 to place and ship each order and 562 per year, Finance Basics

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It costs 30 to place and ship each order and 562 per year

Finance: EOQ, Average Inventory

Question

Cheeseburger and Taco Company purchases 11,274 boxes of cheese each year. It costs $30 to place and ship each order and $5.62 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. Calculate Economic Order Quantity.

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Finance Basics: It costs 30 to place and ship each order and 562 per year

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