Mark Achin Sells 3,600 Electric Motors Each Year

Multiple Choice

Mark Achin sells 3,600 electric motors each year.The cost of these is $200 each, and demand is constant throughout the year.The cost of placing an order is $40, while the holding cost is $20 per unit per year.There are 360 working days per year and the lead-time is 5 days.What is his economic order quantity in units?

A) 100
B) 200
C) 60
D) 120