Question: ( Chapter 12: Economic Order Quantity) Taylor Supply is a wholesaler of office supplies and equipment. Taylor purchases cartons of staples from Barker Manufacturing at
(Chapter 12: Economic Order Quantity) Taylor Supply is a wholesaler of office supplies and equipment. Taylor purchases cartons of staples from Barker Manufacturing at $7 per carton (of staples). Taylor incurs a fixed charge of $90 per order to cover order equipment and clerical costs. Taylor has projected sales to be 220,000 boxes next year. Taylor's accounting department has determined the holding cost percentage as 28% annually.
What order quantity (to the nearest carton) will result in Taylor's annual order cost equaling its annual inventory carrying cost?
Group of answer choices
4,495 units
23,785 units
404 units
350 units
5,190 units
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