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    Exam 18: The Management of Accounts Receivable and Inventories
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    If a Lawn Mower Assembly Plant Orders 25,000 Frames Per
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If a Lawn Mower Assembly Plant Orders 25,000 Frames Per

Question 3

Question 3

Multiple Choice

If a lawn mower assembly plant orders 25,000 frames per year at a price of $27 each, what is the EOQ if the ordering cost per order is $35 and the annual inventory carrying cost is 12 percent?


A) 735
B) 255
C) 567
D) 520

Correct Answer:

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