Each Year You Sell 3,000 Units of a Product at a Price

Multiple Choice

Each year you sell 3,000 units of a product at a price of $29.99 each. The variable cost per unit is $18.72 and the carrying cost per unit is $1.43. You have been buying 250 units at a time. Your fixed cost of ordering is $30. What is the economic order quantity?

A) 329 units
B) 338 units
C) 342 units
D) 355 units
E) 367 units