Figure 8-3 Martin Company Uses 625 Units of a Part

question 100

Multiple Choice

Figure 8-3 Martin Company uses 625 units of a part each year. The cost of placing one order is $8; the cost of carrying one unit in inventory for a year is $4.
-Refer to Figure 8-3. What is the EOQ for Martin?

• A) 100
• B) 50
• C) 45
• D) 30
• E) 20

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Definitions:

Car Wash Headquarters

A central office or main location from which the operations of multiple car wash facilities are managed or directed.

Lost Property

Items that are unintentionally left by their owner, who then becomes disconnected from them and does not know where to find them.

Finder

An individual or entity that locates, identifies, or recovers property or information, potentially earning a fee or commission for their services.

Bailor

An individual who temporarily entrusts possession of personal property to another, known as the bailee, under a bailment agreement.