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Determine What economic order quantity for ordering material

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Question 1: Tracks sells 21,924 custom designed GoKarts per year. These GoKarts are sold evenly throughout the year. The manufacturer charges Don a $56 processing cost per order, and Don incurs a carrying cost of $348 per year including storing each GoKart at a local warehouse. What is the economic order quantity for ordering materials?

Option A. 1,624

Option B. 7,056

Option C. 84

Option D. 1,827

Reference no: EM132548808

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