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Massa Machine Tool Expects Total Sales of $60,000

Question 96

Multiple Choice

Massa Machine Tool expects total sales of $60,000. The price per unit is $10. The firm estimates an ordering cost of $25 per order, with an inventory cost of $0.70 per unit. What is the optimum order size?


A) 327 units
B) 655 units
C) 447 units
D) 207 units

Correct Answer:

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