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Question - Consider the following information regarding one of XYZ Company's most popular products, the FIFA endorsed football:
Total sales for 2019 10,000 footballs
Selling price per football $70.00
Cost to carry one football in inventory for 2019 $3.00
Cost to place an order with the football supplier $13.50
Purchase cost of one football $38.00
Required -
1) Calculate the economic ordering quantity (EOQ) for 2019 with respect to the footballs.
2) Briefly explain what your answer from requirement #1 means.
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