Mountain Snow Sports, Inc is trying to determine the optimal order qua
Mountain Snow Sports, Inc is trying to determine the optimal order quantity for snow boards for
the next twelve months. Annual sales are expected to be 1,000,000 units at a retail price of $400
each.
The cost of carrying snow boards is $80 per year. Studies show that it costs Mountain Snow
$250 to prepare and receive an order. What is the EOQ?
A) 2,500 B) 1,850 C) 2,750 D) 2,000
ANSWER
A
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