A Certain Type of Computer Costs $1,000,and the Annual Holding

question 110

Multiple Choice

A certain type of computer costs $1,000,and the annual holding cost is 25% of the value of the item.Annual demand is 10,000 units,and the order cost is $150 per order.What is the approximate economic order quantity?

• A)16
• B)70
• C)110
• D)183
• E)600

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Definitions:

Five-figure Accuracy

A level of precision where a number is accurate to the fifth digit.

Accurate

Characterized by preciseness and exactness in details or measurements.

Terminating Decimal

A decimal that comes to an end or has a finite number of digits after the decimal point.

Decimal Equivalent

The numerical representation of a fraction where the numerator is divided by the denominator to produce a decimal.