Used Furniture Sells 1,330 Sofas a Year at an Average

question 14

Multiple Choice

Used Furniture sells 1,330 sofas a year at an average price per sofa of $549.The carrying cost per unit is $31.60.The company orders 75 sofas at a time and has a fixed order cost of $69 per order.The sofas are sold out before they are restocked.What is the economic order quantity?

• A)76 sofas
• B)72 sofas
• C)81 sofas
• D)98 sofas
• E)101 sofas

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Definitions:

Lowest Terms

Refers to a fraction that is simplified to its smallest possible numerator and denominator without changing its value.

Fractions

A numerical quantity that is not a whole number, representing a part of a whole.

Mixed Numbers

Numbers made up of a whole number and a fraction, indicating a quantity that falls between two consecutive integers.

Lowest Terms

refers to the simplest form of a fraction, where the numerator and denominator are as small as possible and share no common divisors other than 1.