If Annual Demand Is 6,125 Units,annual Holding Cost Is $5

question 71

Multiple Choice

If annual demand is 6,125 units,annual holding cost is $5 per unit and setup cost per order is $50,which of the following is the EOQ lot size?

• A)350
• B)247
• C)230
• D)185
• E)78

---

Definitions:

Compensating Differential

Additional pay offered to employees to offset unpleasant aspects of a job or the risks associated with it.

Desirability

Desirability refers to the attractiveness or appeal of a good, service, or concept to consumers or participants, influencing their choice or preference.

Compensation

Refers to the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, especially a percentage of the money received from a total paid to the agent responsible for the business.