# Scary Clows Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 900 cases every four months from Scary Clowns. Scary Clowns incurs setups costs of \$5100 every time it produces these cases, and its annual holding cost per cae is \$12. a. how many units should Scary clowns produce in each batch?b. What is the total annual setup and holding cost for Scary Clowns using this policy?

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Scary Clows Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 900 cases every four months from Scary Clowns. Scary Clowns incurs setups costs of \$5100 every time it produces these cases, and its annual holding cost per cae is \$12.

a. how many units should Scary clowns produce in each batch?

b. What is the total annual setup and holding cost for Scary Clowns using this policy?

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Step 1

The clown's manufacturer firm sells its special makeup to the circus. Economic order quantity (EOQ) 900 clowns has been ordered by the circus in every 4 months.
Given,
Setup cost= \$5100
Annual Holding cost= \$12 per piece
Circus order clowns in every four months. Hence,

Step 2

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