Mc Donald's sells 1500 burgers per year. The cost to place an order for raw materials is RO 40. The cost of one burger is RO 0.600 and the carrying cost is 20% of the cost. Find the Economic Order Quantity. a. 1000 units O b. 2000 units Oc. 1500 units O d. 800 units

Mc Donald's sells 1500 burgers per year. The cost to place an order for raw materials is RO 40. The cost of one burger is RO 0.600 and the carrying cost is 20% of the cost. Find the Economic Order Quantity. a. 1000 units O b. 2000 units Oc. 1500 units O d. 800 units

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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Question

Mc Donald's sells 1500 burgers per year. The cost to place an order for raw materials is RO 40.
The cost of one burger is RO 0.600 and the carrying cost is 20% of the cost. Find the Economic
Order Quantity.
a.
1000 units
b.
2000 units
1500 units
Od.
800 units

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