Calculate EOQ Annual Demand = 5,000 units Unit price = `Rs 20.00 Order cost = ` Rs16.00 Storage rate = 2% per annum on unit price Interest rate = 12% per annum on unit price Obsolescence rate = 6% per annum on unit price

Calculate EOQ Annual Demand = 5,000 units Unit price = `Rs 20.00 Order cost = ` Rs16.00 Storage rate = 2% per annum on unit price Interest rate = 12% per annum on unit price Obsolescence rate = 6% per annum on unit price

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Calculate EOQ

Annual Demand = 5,000 units
Unit price = `Rs 20.00
Order cost = ` Rs16.00
Storage rate = 2% per annum on unit price
Interest rate = 12% per annum on unit price
Obsolescence rate = 6% per annum on unit price

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