A company has estimated its economic order quantity for Part A at 2,400 units for the coming year. The ordering costs are P200 and carrying costs are P.50 per unit per year. What is the estimated total annual usage?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  A company has estimated its economic order quantity for Part A at 2,400 units for the coming year. The ordering costs are P200 and carrying costs are P.50 per unit per year.

What is the estimated total annual usage?

Lycan Industries electricity costs and machine hours over a six-month period follow:
Machine
Electricity
Cost
P4,800
5,200
5,400
Hours
2,000
January
February
March
2,500
3,000
April
Мay
2,400
5,000
2,800
2,200
5,600
5,000
June
Transcribed Image Text:Lycan Industries electricity costs and machine hours over a six-month period follow: Machine Electricity Cost P4,800 5,200 5,400 Hours 2,000 January February March 2,500 3,000 April Мay 2,400 5,000 2,800 2,200 5,600 5,000 June
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