Rock Bottom Carpets Sells 3,100 Carpets a Year at an Average

question 73

Multiple Choice

Rock Bottom Carpets sells 3,100 carpets a year at an average price per carpet of $1,640.The carrying cost per unit is $218.40.The company orders 500 carpets at a time and has a fixed order cost of $78 per order.The carpets are sold out before they are restocked.What is the economic order quantity?

• A)38 carpets
• B)66 carpets
• C)47 carpets
• D)51 carpets
• E)72 carpets

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Definitions:

Ovulation

The phase of the menstrual cycle during which a mature egg is released from the ovary into the fallopian tube for potential fertilization.

Uterus

A muscular, hollow, pear-shaped organ of the female reproductive tract in which a fertilized ovum develops into a baby.

Syphilis

A communicable venereal disease spread by sexual contact.