The EOQ for a particular model of laptop is 40units and the annual demand is 2000 units. If the ordering cost is $5, what is the unit carrying cost? a. $0.08 b. $12.50 c. $1,600 d. $20,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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1. The EOQ for a particular model of laptop is 40units and the annual demand is 2000 units. If the ordering cost is $5, what is the unit carrying cost?

a. $0.08

b. $12.50

c. $1,600

d. $20,000

2.  Annual demand 10,000 units. Holding cost $1 per unit per year. Set up cost $200 per order. What is the minimum stock administration cost?

a. $2,000

b. $1,000

c. $200

d. $10,000

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