What would be the number of orders required per year

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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 would be the number (rounded) of orders required per year if the economic order quantity were used?

a. 27 orders p.a.

b. 33 orders p.a.

c. 38 orders p.a.

d. 34 orders p.a.

Reference no: EM133040777

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