The General Chemical Company Uses 150,000 Gallons of Hydrochloric Acid

Multiple Choice

The General Chemical Company uses 150,000 gallons of hydrochloric acid per month. The cost of carrying the chemical in inventory is 50 cents per gallon per year, and the cost of ordering the chemical is $150 per order. The firm uses the chemical at a constant rate throughout the year. The chemical's economic order quantity is

A) 9,487 gallons.
B) 11,619 gallons.
C) 32,863 gallons.
D) 1,900 gallons.