Given the Following Information, What Is the Economic Ordering Quantity

question 52

Multiple Choice

Given the following information, what is the economic ordering quantity (EOQ) for Shinebird Textiles?
​Ordering costs = $40 per order
Carrying costs = 20% of purchase price
Purchase price (cost) = $10 per unit
Total sales for year = 1,000 units

• A)142 units
• B)200 units
• C)50 units
• D)90 units
• E)283 units

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