1 A financial manager at Textbook Brokers Inc has estimated that it costs $30 to place an order from a major

Question

1. A financial manager at Textbook Brokers, Inc. has estimated that it costs $30 to place an order from a major

publisher. Further, she estimates that it costs $0.30 to hold each book. Textbook Brokers sells 75,000 books each 120 day period. In the past, the firm has ordered 4,000 books per delivery run. Calculate the difference in the total inventory cost (per period) if the firm moves from an order quantity of 4,000 books to the economic order quantity.

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Finance