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Commerce · Q222

Costing

Graduate and Post Graduate · Commerce · question 222

Q222

"From the following information, calculate the extra cost of material by following EOQ: Annual consumption = 45000 units Ordering cost per order = Rs 10 Carrying cost per unit per annum = Rs 10 Purchase price per unit = Rs 50 Re-order quantity at present = 45000 units There is discount of 10% per unit in case of purchase of 45000 units in bulk"

A.
No saving
B.
Rs. 2,00,000
C.
Rs. 2,22,010
D.
Rs. 2,990
Answer

Answer: Option D

Solution

Answer: Option D
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