Determine the eoq under various conditions


Tiger Corporation purchases 1,200,000 units per year of one component. The fixed cost per order is $25. The annual carrying cost of the item is 27% of its $2 cost.

a) Determine the EOQ under each of the following conditions: (1) no changes (2) order cost of zero, and (3) carrying cost of zero.

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Accounting Basics: Determine the eoq under various conditions
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