Monthly sales of West Ham Limited is 4 400 units at R150 a unit. The purchase price is R90 per unit. The carrying cost amounts to 10% of the purchase price and the ordering cost is R62 per order. 1.1 Calculate the Economic order quantity (EOQ) 1.2 Calculate the Number of orders that need to be placed for the year

Monthly sales of West Ham Limited is 4 400 units at R150 a unit. The purchase price is R90 per unit. The carrying cost amounts to 10% of the purchase price and the ordering cost is R62 per order. 1.1 Calculate the Economic order quantity (EOQ) 1.2 Calculate the Number of orders that need to be placed for the year

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.4DC

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Question

^{INFORMATION
Monthly sales of West Ham Limited is 4 400 units at R150 a unit. The purchase price is R90 per unit. The carrying cost amounts to 10% of the purchase price and the ordering cost is R62 per order.
INFORMATION
Monthly sales of West Ham Limited is 4 400 units at R150 a unit. The purchase price is R90 per unit. The carrying cost amounts to 10% of the purchase price and the ordering cost is R62 per order.}

^{1.1 Calculate the Economic order quantity (EOQ)
1.2 Calculate the Number of orders that need to be placed for the year}

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