Use This Information Below to Calculate the Optimal Order Quantity

question 34

Multiple Choice

Use this information below to calculate the optimal order quantity:
Annual demand for backpacks is 43,000 units
The cost to place an order is $220
The per unit cost of the item is $60.00
The annual holding rate is 37.5%
Choose the closest answer.

• A)920 units
• B)250 units
• C)710 units
• D)830 units

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Definitions:

Mental Modules

Hypothetical structures in the brain, thought to be responsible for processing specific types of information inherent to human survival and social interaction.

Privileged Domains

Privileged domains are areas of knowledge for which the human mind is particularly well-equipped to learn and understand, such as language, spatial relations, and social interactions.

Naïve Psychology

An individual's natural understanding and interpretation of other people's behaviors and mental states.