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A firm sells 2,500 units of an item each year. The carrying cost per unit is $2.06 and the fixed costs per order are $70. What is the economic order quantity? a. 374 units b. 421 units c. 497 units d. 412 units e. 463 units

A firm sells 2,500 units of an item each year. The carrying cost per unit is $2.06 and the fixed costs per order are $70. What is the economic order quantity? a. 374 units b. 421 units c. 497 units d. 412 units e. 463 units

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the economic order quantity?

A firm sells 2,500 units of an item each year. The carrying cost per unit is $2.06 and the fixed costs per order are $70. What is the economic order quantity? a. 374 units b. 421 units c. 497 units d. 412 units e. 463 units
Transcribed Image Text:A firm sells 2,500 units of an item each year. The carrying cost per unit is $2.06 and the fixed costs per order are $70. What is the economic order quantity? a. 374 units b. 421 units c. 497 units d. 412 units e. 463 units
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