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QUESTION 10 Govana Ltd. is a distributor of headphones. Gaia Mart is a local retail outlet which sells headphones. Gaia Mart purchases headphones from Gowana

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QUESTION 10 Govana Ltd. is a distributor of headphones. Gaia Mart is a local retail outlet which sells headphones. Gaia Mart purchases headphones from Gowana Led. at $20,00 per headphone set. Headphones are shipped in packages of 100. Govana Lad pays all incoming freight, and Gaia Mare does not inspect the beadphones due to Gavana's reputation for high quality. Annual demand is 320,000 headphones at a rate of 6500 headphones per week. Gala Mart earna 13% on its cash investments. The purchase order lead time is one week. The following cost data are available $115.50 Relevant ordering costs per purchase order Carrying costs per package per year Relevant insurance, materials handling, breakage, etc., per year $6.50 What is the economic order quantity a. 4390 packages Ob.7394 packages OC 5.81 pages Od. 54.76 package

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