Managerial Accounting

Exercise III-3: Economic Order Quantity (LO 1)
EOQ = SQRT (2 × Quantity × Cost Per Order / Holding Cost Per Order)
Case A
EOQ= √ (2*13230*250/6) = $1,102,500
Case B
EOQ= √ (2*1681*40/20) = $6,724
Case C
EOQ= √ (2*560*10/7) = $1,600
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