Newtown Manufacturing, Inc uses semi-hex joints in its manufacturing p

Newtown Manufacturing, Inc uses semi-hex joints in its manufacturing process.

If Newtown’s
total demand for the joints for next year is estimated to be 57,000 units, and if the cost per order is
$225, what is Newtown’s economic order quantity of semi-hex joints? Assume that carrying costs
for semi-hex joints are $0.75 per unit.
A) 5,848 B) 4,944 C) 3,729 D) 3,987

ANSWER

A