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  3. category order size unit cost 1 0 - 3999 $0.05 2.

Category Order size Unit Cost 1 0 - 3999 $0.05 2. 4000 - 7999 $0.04...

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Accounting

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Category Order size Unit Cost 1 0 - 3999 $0.05 2. 4000 - 7999 $0.04 3 8000 & over $0.03 Ordering cost = $12 Annual holding cost = 20% of unit cost (hint: carry decimal places) Annual Demand = 12,000 units Using the EOQ formula, what is optimal order quantity for category 1? 3999 a. b. 5367 It is not optimal to order any quantity in category 1. C. d. 2500

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