Answer:
It will order 3,865 booklets
Explanation:
We need to use the formula for Economic Optimal Quantity
[tex]Q_{opt} = \sqrt{\frac{2DS}{H}}[/tex]
Where:
D = annual demand
S= supply cost = ordering cost
H= Holding Cost
[tex]Q_{opt} = \sqrt{\frac{2*70,000*80}{.75}}[/tex]
[tex]Q_{opt} =3,864.37[/tex]
It will order 3,865 booklets
How to Remember:
Demand per year and order cost goes in the dividend.
Holding cost goes in the divisor.
