As a result of lower interest rates the financial manager


a.) What is the Economic Order Quantity (EOQ) for a firm that sells 5,000 units when the cost of placing an order is $5 and the carrying costs are $3.50 per unit? b.) How long will the EOQ last? How many orders are placed annually? c.) As a result of lower interest rates, the financial manager determines the carrying costs are now $1.80 per unit. What are the new EOQ and annual number of objects?

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Finance Basics: As a result of lower interest rates the financial manager
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