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Each Year, CTM Sells 450 Units of a Product at a Price

Question 89

Multiple Choice
Each year, CTM sells 450 units of a product at a price of $639 each. The variable cost per unit is $421, the carrying cost per unit is $11.78, and the fixed order cost is $56. What is the economic order quantity?
A) 65 units
B) 58 units
C) 72 units
D) 53 units
E) 84 units

Each year, CTM sells 450 units of a product at a price of $639 each. The variable cost per unit is $421, the carrying cost per unit is $11.78, and the fixed order cost is $56. What is the economic order quantity?


A) 65 units
B) 58 units
C) 72 units
D) 53 units
E) 84 units

Correct Answer:

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