Solved

Parker's Market Sells 9,000 Units a Year of a Product

Question 141

Multiple Choice

Parker's Market sells 9,000 units a year of a product at a price of $4.95 each. The variable cost per unit is $3.30 and the carrying cost per unit is $.65. You have been buying 500 units at a time. Your
fixed cost of ordering is $40. What is the economic order quantity?


A) 1,052 units
B) 1,373 units
C) 1,773 units
D) 2,727 units
E) 2,340 units

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents