Miniature Company Sells Stuffed Tigers What Is the Economic Order Quantity Using the Estimated Amounts

Multiple Choice

Miniature Company sells stuffed tigers.Birtal Inc.manufactures many different stuffed animals.Miniature orders 20,800 tigers per year,400 per week,at $15 per tiger.The manufacturer covers all shipping costs.Miniature earns 15% on its cash investments.The purchase-order lead time is 3 weeks.Miniature sells 310 tigers per week.The following data are available (based on management's estimates) : $\begin{array}{cr}\text { Estimated ordering costs per purchase order }&\$22\\\text { Estimated insurance, materials handling, breakage, }\\\text { and so on, per year } & \$ 7 \\\text { Actual ordering costs per order } & \$ 25\end{array}$ What is the economic order quantity using the estimated amounts?

A) 637.7 stuffed tigers
B) 314.5 stuffed tigers
C) 191 stuffed tigers
D) 325 stuffed tigers