A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate over the 365 days that it is open.The cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00.If the restaurant orders the economic order quantity then the time between orders (order cycle) is
A) 125 days.
B) 75.3 days.
C) 32.8 days.
D) 29.2 days.
Correct Answer:
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A)purchase price.
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A)100
B)115.47
C)200
D)500
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