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What is the annual ordering cost of cheese inventory

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Reference no: EM131413570

Finance: EOQ, Average Inventory

Question

Cheeseburger and Taco Company purchases 11,347 boxes of cheese each year. It costs $11 to place and ship each order and $6.96 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual ordering cost of cheese inventory.

Reference no: EM131413570

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