Annual sales
Roybow Corporation sells lawn mowers that cost $160 each to purchase and prepare for sale. Annual sales are 5,000 mowers, carrying costs are 20 percent of inventory costs, and Roybow incurs a cost of $32 each time an order is placed. (a) What is the EOQ for the mowers? (b) What will be the total inventory costs if the EOQ amount is ordered?
Annual sales