Mama Mia's Pizza purchases its creamy garlic dipping sauce from a supplier. Mama Mia's delivers on-average 225 pizzas each month. Typically, 86 of those orders also include a side order of creamy garlic dipping sauce. The sauces cost $0.35 each, and each order costs $5.50 to process. Because of limited storage space, the manager wants to charge inventory holding at 5 percent of the cost. Determine the economic order quantity. A) 805 B) 86 C) 233 OD) 806

Mama Mia's Pizza purchases its creamy garlic dipping sauce from a supplier. Mama Mia's delivers on-average 225 pizzas each month. Typically, 86 of those orders also include a side order of creamy garlic dipping sauce. The sauces cost $0.35 each, and each order costs $5.50 to process. Because of limited storage space, the manager wants to charge inventory holding at 5 percent of the cost. Determine the economic order quantity. A) 805 B) 86 C) 233 OD) 806

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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a-2