This costs 115 to place an order for inventory item q54

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Reference no: EM13390167

It costs $115 to place an order for inventory item Q54 regardless of the order quantity. Item Q54's purchase cost is $29.22, and demand for Q54 is 50 units per month. Holding cost (annual) for Q54 is estimated at 15% of the purchase cost. What is the optimum time between orders for Q54?

A. Not in excess of 2 months

B. In excess of 2 months but not in excess of 3 months

C. In excess of 3 months but not in excess of 4 months

D. In excess of 4 months but not in excess of 5 months

E. In excess of 5 months

Reference no: EM13390167

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