Answer:
A. 300
Explanation:
The computation of the economic order quantity is shown below:
= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
where,
Annual demand = 600 bottles × 50 weeks = 30,000 bottles
Carrying cost per bottle = $50 × 40% = $20
And, the ordering cost per order is $30
Now put these values to the above formula
So, the value would equal to
= [tex]\sqrt{\frac{2\times \text{30,000}\times \text{\$30}}{\text{\$20}}}[/tex]
= 300 bottles
Hence, option A is correct
