Given the Following Information, What Is the Economic Ordering Quantity

question 26

Multiple Choice

Given the following information, what is the economic ordering quantity (EOQ) for Nashville Records Inc.? ​
Total demand (sales) = 15,625 units per year
Selling price = $10 per unit
Purchase price (cost) = $5
Carrying costs = 25 percent of inventory value
Fixed cost per order = $1,000

• A)3,536 units
• B)5,000 units
• C)3,953 units
• D)1,581 units
• E)2,500 units

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Definitions:

Acquired Comparative Advantage

The ability gained through strategic development and investment in industries or areas where a country or firm did not previously have a natural comparative advantage.

German Beer

Refers to beer produced in Germany, known for its quality and variety, and regulated by the Reinheitsgebot, or beer purity law.

American Beer

Typically refers to beer produced in the United States, often characterized by a lighter lager style but also includes a wide variety of craft brews.

Factor Endowments

The quantity and quality of labor, land, and capital that a country possesses, influencing its economic productivity.