Firm switches to the EOQ method of inventory

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Reference no: EM131919767

Karloff's Medical Supply maintains an average inventory of 2,000 imitation human hands for sale to medical schools. The carrying cost per hand per year is estimated to be $1.25. Karloff places an order for 4,000 hands on the first of each quarter and the order cost is $80. What will Karloff's total carrying costs be if the firm switches to the EOQ method of inventory?

Reference no: EM131919767

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