Computing the annual holding cost

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Reference no: EM131821799

Question: Icy Snowmobile, Inc., has an annual demand for 1,200 snowmobiles. Their purchase cost for each snowmobile is $2,500. It costs about $250 to place an order, and the holding rate is 35 percent of the unit cost. Compute the

(a) EOQ,

(b) annual holding cost,

(d) total annual inventory cost.

Reference no: EM131821799

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