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One of the Best-Selling Items the Corner Store Offers Sells

Question 91

Multiple Choice
One of the best-selling items the Corner Store offers sells for $3.99 a unit with a variable cost per unit of $2.88. The carrying cost per unit is $1.07 and the fixed order cost is $42. What is the economic order quantity assuming the store sells 650 units annually?

One of the best-selling items the Corner Store offers sells for $3.99 a unit with a variable cost per unit of $2.88. The carrying cost per unit is $1.07 and the fixed order cost is $42. What is the economic order quantity assuming the store sells 650 units annually?


A) 202 units
B) 194 units
C) 226 units
D) 214 units
E) 221 units

Correct Answer:

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