Pika Pumps Uses a Special Component in Manufacturing Its Pool

Multiple Choice

Pika Pumps uses a special component in manufacturing its pool pumps.Pika produces 26,000 pool pumps per year, each of which requires one of these special components.The annual cost of holding one component is $4 and Pika's management estimates that the cost of placing and receiving a typical order is $125.Production is constant, and the lead time to receive an order is one week.Assume 52 weeks in a year. Pika's economic order quantity is approximately:

A) 456.
B) 41.
C) 1,275.
D) 901.
E) 1,803.