A Firm Sells 4,500 Units of an Item Each Year

question 35

Multiple Choice

A firm sells 4,500 units of an item each year.The carrying cost per unit is $2.15 and the fixed costs per order are $69.What is the economic order quantity?

• A)374 units
• B)421 units
• C)497 units
• D)537 units
• E)623 units

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Definitions:

Sales Promotions

Marketing strategies intended to increase product visibility and sales through discounts, coupons, or special offers.

Rebates

A partial refund to someone who has paid too much money for tax, rent, or a utility.

Samples

Small portions or quantities of a product or data used to represent the whole population.

Contests

Competitive events or activities where participants attempt to win prizes or recognition by demonstrating skill, knowledge, or talent.