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Answer the Following Question(s)using the Information Below

Question 146

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Answer the following question(s) using the information below:
Garry's Golf Supplies is a local retail outlet which sells golf balls.Garry's purchases the golf balls from Green Grass Incorporated at $0.75 per ball; the golf balls are shipped in cartons of 72, FOB destination.Annual demand is 172,800 golf balls at a rate of 3,322 balls per week.Garry's Golf Supplies earns 12% on its cash investments.The purchase order lead time is one week.The following cost data are available:
Answer the following question(s) using the information below: Garry's Golf Supplies is a local retail outlet which sells golf balls.Garry's purchases the golf balls from Green Grass Incorporated at $0.75 per ball; the golf balls are shipped in cartons of 72, FOB destination.Annual demand is 172,800 golf balls at a rate of 3,322 balls per week.Garry's Golf Supplies earns 12% on its cash investments.The purchase order lead time is one week.The following cost data are available:    -What is the economic order quantity for Garry's golf ball purchases? A) 200 cartons B) 288 cartons C) 300 cartons D) 883 cartons E) 218 cartons
-What is the economic order quantity for Garry's golf ball purchases?


A) 200 cartons
B) 288 cartons
C) 300 cartons
D) 883 cartons
E) 218 cartons

Correct Answer:

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