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    EOQ Analysis - ABC Corporation

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    Having problems solving this because I can not determine "S" Here is the problem.

    ABC Corporation purchases 1,200,000 units per year of a component. The fixed cost per order is $25. The annual carrying cost of the item is 27% of its $2 cost.

    A) Determine the EOQ cost under the following conditions: (1) No changes,
    (2) order cost of zero, and (3) carrying cost of zero

    B). what do your answers illustrate about the EOQ Model.

    I have attached a file of the work I have done. Any help would be greatly appreciated.

    © BrainMass Inc. brainmass.com June 3, 2020, 9:06 pm ad1c9bdddf
    https://brainmass.com/business/accounting/eoq-analysis-abc-corporation-165784

    Attachments

    Solution Summary

    Excel file contains calculation of EOQ cost under the following conditions:
    (1) No changes,
    (2) order cost of zero, and
    (3) carrying cost of zero

    $2.19

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