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    Economic Order Quantity Calculations

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    Sales are estimated to be 4,500 (d) units annually at $3,000 each. The cost of each unit for Taylor Incorporated is $1,200 (v). Inventory carrying cost is (c) 5% of the cost value of the device. Order placement (p) cost is $60.

    I need to know the Economic Order Quantity (EOQ).

    I already have the equation I just not sure if I'm putting the items in the correct spot.

    EOQ =2PD/CV

    I placed the p,d,c, and v where I think they go! My answer is 113841.9958. I'm just not certain that I worked this problem correctly. Is this correct?

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    Solution Summary

    The expert examines economic order quantity calculations.