Each Year You Sell 1,200 Units of a Product at a Price

question 361

Multiple Choice

Each year you sell 1,200 units of a product at a price of $59.99 each. The variable cost per unit is $37.91 and the carrying cost per unit is $4.57. You have been buying 175 units at a time. Your fixed cost of ordering is $80. What is the economic order quantity?

• A) 185 units
• B) 195 units
• C) 205 units
• D) 215 units
• E) 225 units

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Definitions:

Job Satisfaction

The level of contentment employees feel regarding their job, which can affect their performance and retention.

Turnover

The rate at which employees leave a company and are replaced by new employees, often used as an indicator of workplace satisfaction and stability.

Progression Of Withdrawal

A situation where an individual gradually disengages or removes themselves from a particular role or activity.

Lateness

The state of not being on time or delayed in comparison to a scheduled or expected time.