What Is the Economic Order Quantity for an Automobile Dealer

question 65

Multiple Choice

What is the economic order quantity for an automobile dealer selling 2,000 cars per year, at a cost of $750 per order, and a carrying cost of $300 per automobile?

• A)40 cars
• B)71 cars
• C)100 cars
• D)126 cars

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Definitions:

Stock's Beta

A rephrased definition for Beta Coefficient; it measures a stock's volatility in relation to the overall market, indicating the risk associated with the stock's returns.

Well-diversified Portfolio

An investment collection that includes a wide range of asset classes in order to minimize risks and maximize returns.

Coefficient of Variation

A measure of relative variability that indicates the ratio of the standard deviation to the mean.

Standard Deviation

A statistical measure that represents the dispersion or variability around the mean of a dataset, commonly used to quantify the risk of an investment.