Cheeseburger and taco company purchases 7117 boxes of


Finance: EOQ, Average Inventor

Question

Cheeseburger and Taco Company purchases 7,117 boxes of cheese each year. It costs $18 to place and ship each order and $7.19 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual carrying costs of cheese inventory.

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