Olinda Company has expected sales of 750,000 units per year, a carrying cost of $10 per unit, and an ordering cost of $15 per order.

5. What is the economic order quantity? *

5 points

750 units

1,000 units

1,061 units

1,500 units

6. What is the average inventory? *

5 points

500 units

750 units

1,000 units

1,500 units

7. How many orders will be placed during the year? *

5 points

375 orders

500 orders

750 orders

1,000 orders

8. What is the total ordering cost? *

5 points

$5,000

$7,500

$10,000

$15,000

9. What is the total carrying cost? *

5 points

$5,000

$7,500

$10,000

$15,000

10. If an additional 80 units of inventory will be required as safety stock, what will the new average inventory be? *

5 points

80 units

580 units

830 units

1,580 units

11. If an additional 100 units of inventory will be required as safety stock, what will the new total carrying cost be? *

5 points

$1,000

$7,500

$8,500

$12,750