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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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Question

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

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