Principles of Cost Accounting: P2-3 Chavez Chemical Inc. requires 20,000 gallons of material

Principles of Cost Accounting
P2-3 Economic order quantity; tabular computation

Chavez Chemical Inc. requires 20,000 gallons of material annually; the cost of placing an order is $20; the annual carrying cost per gallon is $5.

Required:
Determine the EOQ from potential order sizes of 300,400, 500, 600, 700, and 800 gallons by constructing a table similar to the one appearing on page 71.
Powered by