Answer:
EOQ in terms of quantity=100 units
EOQ in terms of dollars=$6,000
Order to be made in the year=15 orders
Explanation:
The EOQ for the given data in the question shall be determined through following formula:
EOQ=(2AOc/Hc)^1/2
A=Annual demand=1,500
Oc=Cost per order=$50
Hc=holding cost per unit=25%*60=$15
EOQ in terms of quantity=(2*1,500*50/15)^1/2=100 units
EOQ in terms of dollars=100*60=$6,000
Order to be made in the year=Annual demand/EOQ
=1,500/100=15 orders
