Question: Sally needs to calculate the EOQ of canned corn. The company uses 300 cases of canned corn per year. The cost of one case is $4.00, the ordering cost is $2.00 and the storage cost is 10% the value of the corn.
What is the EOQ in dollars? $109.54
What is the EOQ in units? 55
Answer: I just want to know if the answer that I got was correct. If not what do you believe that I did incorrectly?
I took the formula 2*$2.00*300cs/.10 and then got the square root of the result to get the first answer. On the second answer I took the formula 2*$2.00*300cs/.40 and then got the square root of the result to get that answer. Am I doing this correctly?