Given: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order, and carrying costs of P2.40 per pipe. With the given data, can you give me the solution on how to get: -What is the economic ordering quantity? -Total inventory cost at EOQ -How many orders will be placed during the year? -What will the average inventory be? Thank you in advance.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Given:

Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order, and carrying costs of P2.40 per pipe.

With the given data, can you give me the solution on how to get:

-What is the economic ordering quantity?

-Total inventory cost at EOQ

-How many orders will be placed during the year?
-What will the average inventory be?

Thank you in advance. 

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