Question: A product whose EOQ is 40 units experiences a decrease in ordering cost from $90 per order to $22.5 per order. The revised EOQ is:

  1. A product whose EOQ is 40 units experiences a decrease in ordering cost from $90 per order to $22.5 per order. The revised EOQ is:
  1. three times as large.
  2. one-third as large.
  3. nine times as large.
  4. one-ninth as large.
  5. half as large.
  6. cannot be determined.

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