Use the Following Information to Answer the Following Questions

question 16

Multiple Choice

Use the following information to answer the following Questions
Dazzle Graphics uses a special purpose paper on 80% of its jobs. The paper is purchased in 100-sheet packages at a cost of $100 per package. Management estimates that the cost of placing and receiving a typical order is $15, and the annual cost of carrying a package in inventory is $1.50. Dazzle uses 2,600 packages each year. Production is constant, and the lead time to receive an order is 1 week.


-The economic order quantity is approximately:

• A) 203 packages.
• B) 225 packages.
• C) 228 packages.
• D) 565 packages.
• E) 631 packages.

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