The economic order quantity if annual demand is 100 units is: 10 units.
Economic order quantity
Using this formula
Economic order quantity =√2×Annual demand× Order placement cost/ Holding cost
Let plug in the formula
Economic order quantity=√2×100×$25/$50
Economic order quantity=√5,000/50
Economic order quantity=√100
Economic order quantity=10 units
Inconclusion the economic order quantity if annual demand is 100 units is: 10 units.
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