1. A wholesaling business purchases an item from a manufacturer at a cost of $50 per unit.On average, the business sells 12,500 units of this item each year to retailers. It costs the wholesaler $22 per order to process a purchase transaction and receive its shipment.The annual inventory carrying cost per unit for the item is 40% of its purchase cost per unit.
3. Using the Basic Economic Order Quantity model, what is the EOQ for this item?
4. A.120 units
5. B.142 units
6. C.166 units
7. D.186 units