Answer:
A. 566 pounds
Step-by-step explanation:
Given: Demand for rice is very consistent= 200 pounds per month.
Cost of rice per order= $50 per order.
Rice cost= $5 per pound.
Carrying charge= 15%
EOQ: Economic order quantity (EOQ) is the number of units that company should include in their inventory with each order to reduce cost of inventory.
Now, calculating EOQ.
Formula; EOQ=

D= Demand in units for specified period.
P= relevant ordering costs per order.
C= Relevant carrying cost of one unit in stock for the time period used for D.
EOQ=

⇒ EOQ=

Opening parenthesis
⇒ EOQ=

⇒ EOQ=

∴ EOQ=

Hence, Economic order quantity is 566 pounds.