Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9780077861704
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 20, Problem 12QP
Summary Introduction

To determine: The economic order quantity (EOQ).

Introduction:

Economic order quantity refers to a model or tool designed for reducing the total costs (carrying costs and ordering costs) of the inventory.

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What is the economic order size? (EOQ)Additionally, find the Total cost, Average Inventory, and Order frequency
Given: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order, and carrying costs of P2.40 per pipe. With the given data, can you give me the solution on how to get: -What is the economic ordering quantity? -Total inventory cost at EOQ -How many orders will be placed during the year?-What will the average inventory be? Thank you in advance.
16) can you please help with this question?

Chapter 20 Solutions

Fundamentals of Corporate Finance

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