Short Grass Incorporated's economic order quantity is <em>4,602 balls or 64 cartons.</em>
Data and Calculations:
Cost per ball = $1.15
Balls per cartoon = 72
Annual demand = 158,520
Weekly demand = 3,891 balls
The number of cartoons demanded per year = 2,202 (158,520/72)
Earnings on cash investments = 8%
Purchase-order lead time = 1 week
Ordering costs per purchase order = $128,000
Handling costs = $1,916 ($0.87 x 2,202)
The economic order quantity (EOQ) = square root of (2 x Demand x Ordering costs)/Handling costs
= square root of (2 x 158,520 x $128,000)/$1,916
= square root of (21,180,125)
= 4,602 balls or 64 cartons
Thus, the economic order quantity is <em>4,602 balls or 64 cartons.</em>
Learn more: brainly.com/question/14625177
