A company sells 3,000 units of an item each year. The carrying cost per unit is $1.50, and the fixed cost per order is $80. What is the economic order quantity (EOQ)? a. 350 units b. 374 units c. 566 units d. 480 units

A company sells 3,000 units of an item each year. The carrying cost per unit is $1.50, and the fixed cost per order is $80. What is the economic order quantity (EOQ)? a. 350 units b. 374 units c. 566 units d. 480 units

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 2CE: Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An...

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Question

What is the economic order quantity of this accounting question?

A company sells 3,000 units of an item each year. The
carrying cost per unit is $1.50, and the fixed cost per order is
$80.
What is the economic order quantity (EOQ)?
a. 350 units
b. 374 units
c. 566 units
d. 480 units

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