Burley Company has the following information available concerning one of its inventory items:
-The economic order quantity for this item is
A) 16 units.
B) 160,000 units.
C) 400 units.
D) 500 units.

Question

Burley Company has the following information available concerning one of its inventory items:  
-The economic order quantity for this item is
A) 16 units. 
B) 160,000 units. 
C) 400 units. 
D) 500 units.

Quizplus · Accepted Answer

The economic order quantity (EOQ) is typically calculated using a formula that considers factors like demand rate, ordering cost, and holding cost. Without specific data, the most reasonable choice based on typical EOQ values for many products is 400 units.

Burley Company Has the Following Information Available Concerning One of Its