Answer:
A. 500 units
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]
= [tex]\sqrt{\frac{2\times \text{25,000}\times \text{\$50}}{\text{\$10}}}[/tex]
= 500 units
While computing the economic order quantity we take the annual demand, ordering cost and the carrying cost in the computation part. It minimizes the ordering cost and the carrying cost. At this level, these two costs are equal
All other information which is given is not relevant. Hence, ignored it
