Athletic Sports Store sells tennis rackets. The store orders the rackets from a supplier at a cost of $250 per order. The store estimates that the annual carrying cost is 25% of the purchase price, which is $40 per unit per year. The store annual demand is estimated to be 20,000 rackets. What is the EOQ, the total number of orders required during the year, and the total annual cost?

If you were advising a north dakota company about its selection process, would you advise it to relax its selection criteria during the oil boom? why or why not?

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Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.