Aberwald Corporation Expects to Order 126,000 Memory Chips for Inventory

question 32

Multiple Choice

Aberwald Corporation expects to order 126,000 memory chips for inventory during the coming year and has calculated its economic order quantity as 3000 units. If the cost per order is $5, the total ordering cost incurred by Aberwald is:

• A) $500.
• B) $425.
• C) $210.
• D) $310.
• E) $620.

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