The Road Ready Riding, Inc will use an estimated 24,000 wheel assemblies in its manufacturing
process next year. The carrying cost of the wheel assembly inventory is $1.80 per wheel and the
ordering cost per order is $50.
What is Road Ready’s economic ordering quantity of wheel
assemblies?
A) 785 B) 997 C) 1,155 D) 1,098
ANSWER
C
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