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Question - DustVac buys from a wholesaler and sells at retail the model DV99 carpet vacuum with details as follows:
Usage per annum is 2 orders p.a. @ 1,500 units each
Order costs of $80.67 per order
Holding cost per unit per annum $40.00
What is the economic order quantity (rounded)?
a. 110 units
b. 78 units
c. 92 units
d. 88 units
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