Answer:
The order quantity that will minimize total cost = [tex]\sqrt{2DCO/CC[/tex]
= [tex]\sqrt{(2 x 4900 x $50)/(0.4 x 4.90)[/tex]
= [tex]\sqrt{$490,000/1.96}[/tex]
= 500 units
Explanation:
Demand = 4900
ordering cost ( Co) = $50
Carrying cost = 40% x $4.90 = $1.96