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Rock Bottom Carpets sells 5,600 carpets a year at an average price per carpet of $1,490. The carrying cost per unit is $22.37. The company orders 500 carpets at a time and has a fixed order cost of $69 per order. The carpets are sold out before they are restocked. What is the economic order quantity?
a) 147 carpets
b) 166 carpets
c) 186 carpets
d) 372 carpets
A project has a net present value of zero. Which one of the following best describes this project?
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