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Determine the Economic Order Quantity in dozens

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Question - Brady Sporting Goods, Inc. buys baseballs at P200 per dozen from its wholesaler. Brady will sell 36,000 dozen baseballs evenly throughout the year. Brady desires a 10% return on its inventory investment. In addition, rent, insurance, taxes, - etc., for each dozen baseballs - in inventory is P4.00. The administrative cost involved in handling each purchase order is P100. Determine the Economic Order (EOQ) Quantity in dozens?

Reference no: EM132973088

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