Question: 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

  1. 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

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