Flanders Bar and Grill orders cleaning supply kits using the EOQ model. The restaurant estimates that it uses 525 kits per year. The purchase price per kit is $12 with an estimated carrying cost rate of 15%. The cost to place an order from the kit supplier is $10. What is the total annual cost that the restaurant should expect?

a. $120
b. $137.48
c. $76.38
d. $68.74


b. $137.48

Business

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