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True or False, Purchase price is not a factor in determining the Economic Order Quantity.

1 Answer

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Answer:

False

Step-by-step explanation:

Because price is not a factor in the EOQ formula, quantity discounts will not affect EOQ calculations. In the quantity discount model, if holding costs are given as a percentage of unit price, a graph of the total cost curves will have the same EOQ for each curve. Total cost curves will differ across the price levels.

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