Compute the economic order quantity


Problem: For each of the following independent cases, use the equation method to compute the economic order quantity.

                                                                                               Case A    Case B    Case C
Annual requirement (in units) ................................................    13,230       1,681      560
Cost per order ..........................................................................$250          $40        $10
Annual holding cost per unit .......................................................   6             20           7

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Accounting Basics: Compute the economic order quantity
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