Mountain Snow Sports, Inc is trying to determine the optimal order quantity for snow boards for
the next twelve months. Annual sales are expected to be 1,000,000 units at a retail price of $400
each.
The cost of carrying snow boards is $80 per year. Studies show that it costs Mountain Snow
$250 to prepare and receive an order. What is the EOQ?
A) 2,500 B) 1,850 C) 2,750 D) 2,000
A
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