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Given the Following Information, What Is the Economic Ordering Quantity

Question 23

Multiple Choice

Given the following information, what is the economic ordering quantity (EOQ) for Nashville Records Inc.? ​
Total demand (sales) = 15,625 units per year
Selling price = $10 per unit
Purchase price (cost) = $5
Carrying costs = 25 percent of inventory value
Fixed cost per order = $1,000


A) 3,536 units
B) 5,000 units
C) 3,953 units
D) 1,581 units
E) 2,500 units

Correct Answer:

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