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One of the Primary Products Your Firm Offers Sells for $24.99

Question 122

Multiple Choice

One of the primary products your firm offers sells for $24.99 a unit. The variable cost per unit is $14.42 and the carrying cost per unit is $.74. You sell 7,320 of these units each year. The fixed cost to order this item is $50. What is the economic order quantity?


A) 982 units
B) 995 units
C) 1,013 units
D) 1,069 units
E) 1,111 units

Correct Answer:

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