Beta Supply Company Has an Economic Order Quantity of 400

question 81

Multiple Choice

Beta Supply Company has an economic order quantity of 400 units for item A. The annual demand for the product is 10,000 units, and the cost of placing an order is $20. Calculate the carrying cost per unit. (Round answer to two decimal places.)

• A)$6.75
• B)$2.50
• C)$3.10
• D)$4.25

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Definitions:

Verbal Offer

An offer made orally rather than in written form, often preliminary and less formal.

Legally Binding

A contract or agreement that is enforceable by law, where parties are obligated to fulfill the terms.

Nonprofit Organization

An organization that operates for the public or social benefit, rather than for the purpose of making profits for owners or shareholders.

American Red Cross

The American Red Cross is a humanitarian organization that provides emergency assistance, disaster relief, and education inside the United States.