You Sell 28,000 Units of an Item Each Year

question 7

Multiple Choice

You sell 28,000 units of an item each year. The carrying cost per unit is $.42 and the fixed costs per order are $52. What is the economic order quantity?

• A) 1,862 units
• B) 1,907 units
• C) 2,414 units
• D) 2,507 units
• E) 2,633 units

---

Definitions:

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, typically imposing higher rates on those with higher incomes.

Tax Rates

The percentage at which an individual or corporation is taxed, which can vary according to income level, type of taxpayer, and jurisdiction.

Federal Marginal Income Tax

pertains to the portion of tax applied to an individual's or entity's last dollar of income, under the federal tax system, which uses progressively higher rates for higher income levels.