GFOA CPFO Exam - Topic 2 Question 115 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 115
Topic #: 2

The city of Mudville uses 1600 oil filters annually. The cost of placing an order is $5.00. The unit cost is $3.50. The carrying cost is 20 percent, and the carrying cost per unit is &0.70(0.20x$3.50). What is the economic order quantity?

A150 oil filters

B130 oil filters

C155 oil filters

DNone of these

Show Suggested Answer

Suggested Answer: A

by Gerald at Aug 03, 2025, 10:31 PM

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Tyra

6 months ago

The calculations point to option A for sure!

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Portia

6 months ago

Wait, are we sure about those carrying costs?

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Cyndy

6 months ago

I think the EOQ is definitely around 150.

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Emeline

6 months ago

None of these seems right to me, what if the costs change?

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Dino

6 months ago

Mudville uses 1600 oil filters a year.

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Beckie

7 months ago

I’m leaning towards option D, but I can’t recall if we ever got a result that didn’t match the choices given.

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Ashlyn

7 months ago

I feel like I’ve seen an EOQ question with different numbers before, and I think it was around 150 units too. Maybe that’s a hint?

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Brinda

7 months ago

I think the EOQ formula is supposed to minimize total costs, but I’m a bit confused about how to apply the carrying cost here.

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Alva

7 months ago

I remember we did a similar problem in class about calculating EOQ, but I’m not sure if I got the formula right for this one.

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Isaiah

7 months ago

I'm a little confused by this question. There are a lot of numbers and formulas involved, and I'm not sure I fully understand how to apply them. I'll try to work through it step-by-step, but I might need to ask the professor for some clarification if I get stuck.

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Antonio

8 months ago

Okay, I've got this! The economic order quantity formula is the square root of (2 * annual usage * order cost) / (unit cost * carrying cost). Plugging in the numbers, I get 155 oil filters. I'm confident that's the right answer.

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Michal

8 months ago

Hmm, this looks like a tricky one. I'm not totally sure how to approach it, but I'll give it my best shot. I think I need to find the economic order quantity, which is the optimal order size that minimizes the total cost. I'll try to work through the formula and see if I can get the right answer.

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Willow

8 months ago

Okay, let's think this through step-by-step. We have the annual usage, order cost, unit cost, and carrying cost. I think the formula for economic order quantity is the square root of (2 * annual usage * order cost) / (unit cost * carrying cost). Let me plug in the numbers and see what I get.

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