What Is the Economic Order Quantity for an Automobile Dealer

question 110

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 EOQ =
• =

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Definitions:

Core Principles

Fundamental beliefs or values that serve as the foundation for behavior, decision-making, and actions within an organization or individual's life.

Professional Selling

The process and activities required to effectively develop, manage, enable, and execute a mutually beneficial, interpersonal exchange of goods and/or services for equitable value.

Break-Even Point

the point at which total costs and total revenue are equal, meaning a business is neither making a profit nor taking a loss, serving as a critical financial analysis metric.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.