Financial

XYZ Company currently purchases 40,000 units during the year to meet yearly demand for this product. Sales are expected to increase by 20%. Each unit has a purchase cost of $20. It costs $25 every time an order is placed and it costs $1.25 to carry one unit in stock for a year. What is the economic ordering quantity (EOQ) for this product (if rounded to the nearest whole nit)? ( 2 marks) 346 units 1239 units 1265 units 1386 units