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What is the economic order quantity

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The mechanical engineer at Robinson Manufacturing has developed a new gearbox. The local distributor expects to increase his sales by 30% over the past year due to this new development. Last year's sales were $70,000 at a selling price of $100 per unit. The manager would like to cut costs as much as possible and comes to you for advice.

Relevant cost information includes:Total ordering costs $150.00 per order and the total carrying cost $6 per unit

What is the economic order quantity?

Reference no: EM132585665

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