Michaels mechanical sells 6000 jettison machines annually, Finance Basics

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Michaels mechanical sells 6000 jettison machines annually

Michael's Mechanical sells 6,000 jettison machines annually. Each machine costs Michael's $2,000 to purchase, inventory carrying costs are 30 percent of the purchase price, and the cost of placing an order with its supplier is $120.

(a) What is the EOQ?

(b) What is the total inventory cost at the EOQ level?

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Finance Basics: Michaels mechanical sells 6000 jettison machines annually

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Finance Basics: Michaels mechanical sells 6000 jettison machines annually

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