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Purchases the sprinkler heads for its line

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Please answer question and provide breakdown.

Albemarle Sprinkler Company purchases the sprinkler heads for its line of lawn sprinklers 50. from a supplier. Albemarle's production manager wonders how many sprinkler heads she should order for the next six months. The company's marketing manager forecasts sales to be 29,400 units for the upcoming six months. The purchasing manager has negotiated a price of $6.47 per head. The production manager estimates that it costs $17.25 to place an order with the supplier and $2.97 to store a sprinkler head in inventory for six months.

What is Albemarle's total inventory cost using the EOQ point?

Reference no: EM131397862

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