Show the Total Cost Expression and Calculate the EOQ for an Item

question 24

Short Answer

Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%,unit cost $8.00,annual demand of 40,000,and ordering cost of $48.

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Definitions:

Deductible IRA Contribution

An investment in an Individual Retirement Account that can be deducted from gross income for tax purposes, thus reducing taxable income.

Pension Plan

A type of retirement plan typically sponsored by employers that provides monthly income to employees after they retire.

Defined-contribution Plans

Retirement plan wherein employees contribute a fixed amount or a percentage of their paychecks into an account that is intended to fund their retirements.

Maximum Contribution Limits

The highest amount that can be contributed to a retirement plan, savings account, or other tax-advantaged account in a given period without incurring penalties.