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enot [183]
4 years ago
11

In the basic EOQ model, if annual demand is 50, carrying/holding cost is $2, and ordering cost is $15, This will result in a tot

al annual inventory cost of:_______
Business
1 answer:
IgorLugansk [536]4 years ago
6 0

Answer:

$104.77

Explanation:

Total annual inventory cost (TC)= DC + (Q/2)H + (D/Q)S

Where,

D = annual demand = 50

S = Ordering cost = $15

H = Holding cost = $2

Q= ?

But,

EOQ = √2DS/H

= √ 2 * 50 * 15 / 2

EOQ = 27.39 units

TC = 50 × 2 + 2(27.39/2) + 15(50/27.39)

= 50 + 27.39 + 27.38

= $104.77

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This is further explained below.

<h3>What is an intranet?</h3>

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2 years ago
Which capital budgeting method uses accrual accounting, rather than net cash inflows, as a basis for calculations?
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Answer:

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It ignore the cash inflow.                                    

4 0
3 years ago
Read 2 more answers
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Answer:

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Answer:

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3 years ago
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