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:
Verified
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