One of the Best Selling Items L

question 42

Multiple Choice

One of the best selling items L.T.Ten offers sells for $9.99 a unit.The variable cost per unit is $6.38 and the carrying cost per unit is $1.12.The firm sells 6,500 of these units each year.The fixed cost to order this item is $75.What is the economic order quantity?

• A)690 units
• B)747 units
• C)933 units
• D)1,157 units
• E)1,260 units

---

Definitions:

Place of Delivery

The specific location agreed upon by the parties in a contract where goods are to be delivered or services are to be provided.

Seller's Place

The location stipulated in a contract where the seller is expected to deliver goods or perform services.

UCC

The Uniform Commercial Code constitutes a thorough legislative framework that governs all kinds of business interactions throughout the United States.

Inspection

The process of examining something carefully, typically to ensure compliance with standards, regulations, or conditions.