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PB uses 2,500 units of component X per year. The entity has calculated that the cost of placing and processing a purchase order for component
PB uses 2,500 units of component X per year. The entity has calculated that the cost of placing and processing a purchase order for component X is $185, and the cost of holding one unit of component X for a year is $25. What is the economic order quantity (EOQ) for component X and, assuming a 52-week year, what is the average frequency at which purchase orders should be placed?
EOQ Frequency of orders
(A) 136 units 3 weeks
(B) 136 units 6 weeks
(C) 192 units 4 weeks
(D) 192 units 5 weeks
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