The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 units Annual cost of Holding £1.50 Annual cost of placing an order £ 500 Required: (i) Calculate the EOQ (ii) Calculate the average inventory (iii) Calculate the total annual ordering cost (iv) Calculate the total annual inventory cost (excluding the purchase
The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 units Annual cost of Holding £1.50 Annual cost of placing an order £ 500 Required: (i) Calculate the EOQ (ii) Calculate the average inventory (iii) Calculate the total annual ordering cost (iv) Calculate the total annual inventory cost (excluding the purchase
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information relates to Unique Ltd for the year 2020:
Annual Demand 408,375 units
Annual cost of Holding £1.50
Annual cost of placing an order £ 500
Required:
(i) Calculate the EOQ
(ii) Calculate the average inventory
(iii) Calculate the total annual ordering cost
(iv) Calculate the total annual inventory cost (excluding the purchase
cost)
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