Problem 8. From the following particulars, calculate the economic order quantity and tabulate your results: Annual requirement : 1,600 units cost of material per unit : $ 40 cost of placing and receiving one order : $ 50 annual carrying cost of inventory : 10% of inventory value.

Problem 8. From the following particulars, calculate the economic order quantity and tabulate your results: Annual requirement : 1,600 units cost of material per unit : $ 40 cost of placing and receiving one order : $ 50 annual carrying cost of inventory : 10% of inventory value.

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

Problem 8. From the following particulars, calculate the economic order quantity and tabulate your
results:
Annual requirement : 1,600 units
cost of material per unit : $ 40
cost of placing and receiving one order : $ 50
annual carrying cost of inventory : 10% of inventory value.

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