Sound Systems Inc.wants to use the economic ordering quantity model to determine the optimal order quantity of speakers.The wholesale unit purchase price to Sound Systems is $50,and annual sales at a $100 per unit retail price total $50,000.The fixed cost of placing an order is $10,and the carrying cost is 50 percent of the purchase price.What is the EOQ,in units?
A) 10
B) 20
C) 30
D) 40
E) 50

Question

Quizplus · Accepted Answer

The Answer of Sound Systems Inc.wants to use the economic ordering quantity model to determine the optimal order quantity of speakers.The wholesale unit purchase price to Sound Systems is $50,and annual sales at a $100 per unit retail price total $50,000.The fixed cost of placing an order is $10,and the carrying cost is 50 percent of the purchase price.What is the EOQ,in units?
A) 10
B) 20
C) 30
D) 40
E) 50