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Cheeseburger and taco company purchases 11347 boxes of

Finance: EOQ, Average Inventory

Question

Cheeseburger and Taco Company purchases 11,347 boxes of cheese each year. It costs $11 to place and ship each order and $6.96 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual ordering cost of cheese inventory.

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Finance Basics: Cheeseburger and taco company purchases 11347 boxes of

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