The annual demand for laptop battery is 4500 units. The cost per unit is RO 8 and inventory carrying costs is 10% of cost per unit. The cost to place an order is RO 50. What is the total inventory costs? a. 300 RO b. 500 RO c. 250 RO d. 600 RO

The annual demand for laptop battery is 4500 units. The cost per unit is RO 8 and inventory carrying costs is 10% of cost per unit. The cost to place an order is RO 50. What is the total inventory costs? a. 300 RO b. 500 RO c. 250 RO d. 600 RO

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

The annual demand for laptop battery is 4500 units. The cost per unit is RO 8 and inventory
carrying costs is 10% of cost per unit. The cost to place an order is RO 50. What is the total
inventory costs?
a. 300 RO
b. 500 RO
C.
250 RO
O d. 600 RO

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