Which would improve Smart Product's total cost at the EOQ more,a 15% reduction in carrying costs or a 10% reduction in order costs?

Question

Quizplus · Accepted Answer

Decreasing carrying costs decreases total costs by $10,062, which is more effective than reducing order costs because carrying costs are recurring expenses that accumulate over time, making their reduction more impactful on the total cost at the Economic Order Quantity (EOQ).

Which Would Improve Smart Product's Total Cost at the EOQ