A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate. If the cost to order the napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00, then the economic order quantity for napkins is
A) 62,500 boxes
B) 10,000 boxes
C) 5,000 boxes
D) 2,500 boxes
Correct Answer:
Verified
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