A fiRm Sells 13,000 Units a Year

question 31

Multiple Choice

A firm sells 13,000 units a year. The carrying cost per unit per year is $0.84. As a policy, orders are placed at 400 units each. The fixed cost per order is $64. What is the economic order quantity?

• A) 995 units
• B) 1,165 units
• C) 1,407 units
• D) 1,595 units
• E) 1,747 units

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Definitions:

Columns

In databases or spreadsheets, vertical divisions of data representing a specific field within a table.

Piracy

The unauthorized use, reproduction, or distribution of copyrighted material, often referring to software, movies, and music.

Illegal

Describes actions or activities that are prohibited by law and subject to criminal penalties or other legal consequences.

Application Software

The class of computer instructions that directs a computer system to perform specific processing activities and provide functionality for users.