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<item><title>Formula of Camp</title><link>http://ems-education.eu/content/2012/09/formula-of-camp</link><description>&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class="MsoNormal" style="margin: 0in 0in 0pt;"&gt;&lt;span style="mso-ansi-language: EN-GB;" lang="EN-GB"&gt;&lt;span style="font-size: small;"&gt;&lt;span style="font-family: Arial;"&gt;A company is selling 900 units of a certain product each year.&lt;br /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/span&gt;&lt;span style="mso-ansi-language: EN-GB;" lang="EN-GB"&gt;&lt;span style="font-size: small;"&gt;&lt;span style="font-family: Arial;"&gt;The fixed cost per order amounts to &amp;euro; 10.00.&lt;br /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/span&gt;&lt;span style="mso-ansi-language: EN-GB;" lang="EN-GB"&gt;&lt;span style="font-size: small;"&gt;&lt;span style="font-family: Arial;"&gt;The cost of holding one unit in stock can be calculated from:&lt;br /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/span&gt;&lt;span style="mso-fareast-font-family: Arial; mso-bidi-font-family: Arial; mso-ansi-language: EN-GB;" lang="EN-GB"&gt;&lt;span style="mso-list: Ignore;"&gt;&lt;span style="font-family: Arial; font-size: small;"&gt;-&lt;/span&gt;&lt;span style="font: 7pt/normal 'Times New Roman'; font-size-adjust: none; font-stretch: normal;"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;&lt;/span&gt;&lt;/span&gt;&lt;span style="mso-ansi-language: EN-GB;" lang="EN-GB"&gt;&lt;span style="font-size: small;"&gt;&lt;span style="font-family: Arial;"&gt;its cost price, being &amp;euro; 25.00&lt;br /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/span&gt;&lt;span style="mso-fareast-font-family: Arial; mso-bidi-font-family: Arial; mso-ansi-language: EN-GB;" lang="EN-GB"&gt;&lt;span style="mso-list: Ignore;"&gt;&lt;span style="font-family: Arial; font-size: small;"&gt;-&lt;/span&gt;&lt;span style="font: 7pt/normal 'Times New Roman'; font-size-adjust: none; font-stretch: normal;"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;&lt;/span&gt;&lt;/span&gt;&lt;span style="mso-ansi-language: EN-GB;" lang="EN-GB"&gt;&lt;span style="font-size: small;"&gt;&lt;span style="font-family: Arial;"&gt;the interest rate of 8% per annum&lt;br /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/span&gt;&lt;span style="mso-fareast-font-family: Arial; mso-bidi-font-family: Arial; mso-ansi-language: EN-GB;" lang="EN-GB"&gt;&lt;span style="mso-list: Ignore;"&gt;&lt;span style="font-family: Arial; font-size: small;"&gt;-&lt;/span&gt;&lt;span style="font: 7pt/normal 'Times New Roman'; font-size-adjust: none; font-stretch: normal;"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;&lt;/span&gt;&lt;/span&gt;&lt;span style="mso-ansi-language: EN-GB;" lang="EN-GB"&gt;&lt;span style="font-size: small;"&gt;&lt;span style="font-family: Arial;"&gt;other cost for holding inventory of 12% of its cost price.&lt;/span&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style="font-family: Arial;"&gt;&lt;span style="mso-ansi-language: EN-GB;" lang="EN-GB"&gt;&lt;span style="font-size: small;"&gt;Applying those data into the formula &lt;/span&gt;&lt;/span&gt;&lt;strong style="mso-bidi-font-weight: normal;"&gt;&lt;span style="font-size: 12pt; mso-ansi-language: EN-GB;" lang="EN-GB"&gt;Q&lt;sub&gt;o&lt;/sub&gt; = &lt;/span&gt;&lt;/strong&gt;&lt;strong style="mso-bidi-font-weight: normal;"&gt;&lt;span style="font-size: 14pt; mso-bidi-font-family: Arial; mso-ansi-language: EN-GB;" lang="EN-GB"&gt;&amp;radic;&lt;/span&gt;&lt;/strong&gt;&lt;strong style="mso-bidi-font-weight: normal;"&gt;&lt;span style="font-size: 12pt; mso-ansi-language: EN-GB;" lang="EN-GB"&gt; (2*D*C&lt;sub&gt;o&lt;/sub&gt; / C&lt;sub&gt;i&lt;/sub&gt;) &lt;/span&gt;&lt;/strong&gt;&lt;span style="font-size: small;"&gt;&lt;span style="mso-ansi-language: EN-GB;" lang="EN-GB"&gt;will result in:&lt;/span&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;</description></item>


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