Each Year You Sell 950 Units of a Product at a Price

question 10

Multiple Choice

Each year you sell 950 units of a product at a price of $899 each.The variable cost per unit is $575 and the carrying cost per unit is $16.90.You have been buying 100 units at a time.Your fixed cost of ordering is $60.What is the economic order quantity?

• A)82 units
• B)95 units
• C)105 units
• D)113 units
• E)124 units

---

Definitions:

Favorable Outcomes

Results or consequences of an action or situation that are beneficial or advantageous.

Master

An individual with authority or control over others, or someone highly skilled in a particular craft or subject.

Causes of Success

Factors or conditions that contribute to achieving goals or reaching desired outcomes, varying widely across different contexts.

Failure

The state or condition of not meeting a desirable or intended objective, and can be viewed as the opposite of success.