University Furniture Sells 2,500 Sofas a Year at an Average

question 34

Multiple Choice

University Furniture sells 2,500 sofas a year at an average price per sofa of $1,250.The carrying cost per unit is $11.60.The company orders 80 sofas at a time and has a fixed order cost of $55 per order.The sofas are sold out before they are restocked.What is the economic order quantity?

• A)154 sofas
• B)172 sofas
• C)181 sofas
• D)198 sofas
• E)211 sofas

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Definitions:

Battery

A criminal offense involving the unlawful physical acting upon a threat, distinct from assault which is the act of creating apprehension of such contact.

Plaintiff

The party who initiates a lawsuit by filing a complaint against the defendant, seeking legal remedy for a grievance.

Contact

A point at which two or more things come together, or a means of communication or interaction between people or organizations.

Defamation

The act of damaging someone's reputation by making false or harmful statements.