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Question 37

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Use the information below to answer the following question(s) .Office Supply House purchases 4,160 reams of paper per year, ordered in lots of 80 reams per week at $150 per ream.The vendor covers all shipping costs.Office Supply House is not required to inspect the shipment upon entry.Office Supply House earns 20% on its cash investments.The purchase order lead time is two weeks.The following cost data are available:
Use the information below to answer the following question(s) .Office Supply House purchases 4,160 reams of paper per year, ordered in lots of 80 reams per week at $150 per ream.The vendor covers all shipping costs.Office Supply House is not required to inspect the shipment upon entry.Office Supply House earns 20% on its cash investments.The purchase order lead time is two weeks.The following cost data are available:    -What is the economic order quantity? A) 324 reams B) 235 reams C) 114 reams D) 100 reams E) 110 reams
-What is the economic order quantity?


A) 324 reams
B) 235 reams
C) 114 reams
D) 100 reams
E) 110 reams

Correct Answer:

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