Calculate the Economic Ordering Quantity for Nashville Records Inc

question 36

Multiple Choice

Calculate the economic ordering quantity for Nashville Records Inc. ,given the following information:
Sales= 15,000 units per year
Sales price= $10 per unit
Purchase price= $5
Carrying cost= 0.25 times inventory value
Fixed cost per order= $1,000

• A) 3,464 units
• B) 4,899 units
• C) 346 units
• D) 490 units
• E) 1,549 units

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