Answered: Calculate the economic order quantity…

Calculate the economic order quantity given the following data. Annual demand (D) 5,000 units Ordering costs (CO) £150 per order Annual holding costs (CH) £2 per unit A 810 B 846 C 866 D 903

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 the economic order quantity given the following data.

Annual demand (D) 5,000 units

Ordering costs (CO) £150 per order

Annual holding costs (CH) £2 per unit

A 810

B 846

C 866

D 903

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