Sunday, November 10, 2019

The best-selling pair of roller skates The Teen Store offers sells for $79.99 a pair. The store consistently sells 5,700 pairs

The best-selling pair of roller skates The Teen Store offers sells for $79.99 a pair. The store consistently sells 5,700 pairs of these roller skates every year. The fixed costs to order more skates is $68 and the carrying costs are $1.95 per pair. What is the economic order quantity? 
 
A. 
446 pairs

B. 
515 pairs

C. 
529 pairs

D. 
631 pairs

E. 
648 pairs
EOQ = [(2 × 5,700 × $68)/$1.95]1/2 = 631 pairs

76.
One of the best selling items L.T. Ten offers sells for $9.99 a unit. The variable cost per unit is $6.38 and the carrying cost per unit is $1.12. The firm sells 6,500 of these units each year. The fixed cost to order this item is $75. What is the economic order quantity? 
 
A. 
690 units

B. 
747 units

C. 
933 units

D. 
1,157 units

E. 
1,260 units
EOQ = [(2 × 6,500 × $75)/$1.12]1/2 = 933 units


77.
Each year you sell 950 units of a product at a price of $899 each. The variable cost per unit is $575 and the carrying cost per unit is $16.90. You have been buying 100 units at a time. Your fixed cost of ordering is $60. What is the economic order quantity? 
 
A. 
82 units

B. 
95 units

C. 
105 units

D. 
113 units

E. 
124 units
EOQ = [(2 × 950 × $60)/$16.90]1/2 = 82 units

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