Scenario 9.5 Tom Bergman, Owner and Operator of the Earplug Superstore, Is

Multiple Choice

Scenario 9.5
Tom Bergman, owner and operator of the Earplug Superstore, is reviewing the costs associated with the store's best-selling hearing aid, the BZ15. The data available to Dr. Bergman concerning this device follow.
Demand = 25 units/week
Order cost = $3/order
Holding cost = $1.50/unit/year
The Earplug Superstore operates 52 weeks a year.
-Use the information in Scenario 9.5. If Tom orders at the economic order quantity, how many units does he order at a time?

A) less than or equal to 75 units
B) greater than 75 but less than or equal to 150 units
C) greater than 150 but less than or equal to 250 units
D) greater than 250 units