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The Cost of a Product Is $5, and the Carrying

Question 27

Multiple Choice

The cost of a product is $5, and the carrying cost rate is 20%; the cost of processing an order is $45 and the annual demand is 1000.What is the economic order quantity (EOQ) ?


A) 5
B) 20
C) 25
D) 200
E) 300

Correct Answer:

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