Given the following information, what is the economic ordering quantity (EOQ) for Nashville Records Inc.? ? Total demand (sales) = 15,625 units per year Selling price = $10 per unit Purchase price (cost) = $5 Carrying costs = 25 percent of inventory value Fixed cost per order = $1,000

A. 3,536 units
B. 5,000 units
C. 3,953 units
D. 1,581 units
E. 2,500 units


Answer: B

Mathematics

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