Question: The Candy Shack has a monthly demand of 200 bags of Watermelon Slices. They pay $11.50 for each box of candy which contains 14 bags for sale. Their ordering costs are $30. Holding costs are negligible but they do pay 11% annually on the money they borrow to make such purchases.
What is the annual demand-in terms of boxes? (Display your answer to the nearest whole number.)
What is the materials costs-per bag? (Display your answer to two decimal places.)
What is the economic order quantity (EOQ)-in terms of bags? (Displayyour answer to the nearest whole number.)