Black Appliances Is Trying to Determine the Optimal Order Quantity

question 178

Multiple Choice

Black Appliances is trying to determine the optimal order quantity for dryers for the next twelve months.Annual sales are expected to be 1,000,000 units at a retail price of $400 each.The cost of carrying dryers is $80 per year.Studies show that it costs Black $250 to prepare and receive an order.What is the EOQ?

• A) 2,750
• B) 2,500
• C) 2,000
• D) 1,850

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Definitions:

Stadium Capacity

The maximum number of spectators that a stadium can accommodate during an event, determined by its physical size and safety regulations.

Full House

A term used in both real estate, to indicate a fully occupied building, and in poker, to describe a hand containing three cards of one rank and two of another.

Ticket Prices

the cost assigned to purchasing a ticket for an event, such as a movie, concert, or sporting event.

Price Inelastic

A description of a good or service's demand when its quantity demanded is relatively insensitive to changes in its price.