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  3. 1. stellar co. uses the eoq model for determining

1. Stellar Co. uses the EOQ model for determining optimum purchase quantity for a raw...

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Accounting

1. Stellar Co. uses the EOQ model for determining optimum purchase quantity for a raw material. The following data is given:

Purchase Price $15 per item

Carriage Cost $50 per order

Ordering Costs $5 per order

Storage Costs 10% of the purchase price plus $0.20 per unit per annum

Annual demand is 4,000 units

What is the EOQ?

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