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Commerce · Q1296

Costing

Graduate and Post Graduate · Commerce · question 1296

Q1296

A firm consumes 90,000 units of a certain item of raw material in its production process annually. It costs Rs. 3 per unit, the cost per purchase order is Rs. 300 and the inventory carrying cost is 20% per year. What is the EOQ?

A.
9470 units
B.
9487 units
Answer
C.
9480 units
D.
9840 units

Answer: Option B

Solution

Answer: Option B
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