Fischer's Furniture sells 2,400 sofas a year at an average price per sofa of $1,250. The carrying cost per unit is $11.60. The company orders 80 sofas at a time and has a fixed order cost of $52 per order. The sofas are sold out before they are restocked. What is the economic order quantity?
A) 147 sofas
B) 162 sofas
C) 171 sofas
D) 188 sofas
E) 211 sofas
Correct Answer:
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