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Commerce · Q883

Costing

Graduate and Post Graduate · Commerce · question 883

Q883

A company buys 8000 units of an item for its annual requirement. Each unit costs Rs. 10, the ordering cost per order is Rs. 30 and the carrying cost is 7.5% of the average inventory per year. The economic order quantity will be

A.
566 units
B.
800 units
Answer
C.
2530 units
D.
900 units

Answer: Option B

Solution

Answer: Option B
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