How to calculate economic order quantity in this problem

Business & Finance
Tutor: None Selected Time limit: 1 Day

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

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Oct 6th, 2015
...
Oct 6th, 2015
Dec 3rd, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer