How to calculate economic order quantity in this problem

label Business
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

Cheeseburger and Taco Company purchases 9,800 boxes of cheese each year. It costs $25 to place and ship each order and $8.92 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

 Calculate Economic Order Quantity.

Round the answer to the whole number.

Oct 6th, 2015

Thank you for the opportunity to help you with your question!

EOQ = [2x9,800x$25/$8.92]^1/2

EOQ =[$490,000/$8.92]^1/2

EOQ =[54933]^1/2

EOQ = 234 (nswer to the whole number)

I hope, you will easily understand the concept.

Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 6th, 2015

Thank you! 

Oct 6th, 2015

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