The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 unitsAnnual cost of Holding £1.50Annual cost of placing an order £ 500 1. Calculate the EOQ 2. Calculate the average inventory 3. Calculate the total annual ordering cost 4. Calculate the total annual inventory cost (excluding the purchase cost)
The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 unitsAnnual cost of Holding £1.50Annual cost of placing an order £ 500 1. Calculate the EOQ 2. Calculate the average inventory 3. Calculate the total annual ordering cost 4. Calculate the total annual inventory cost (excluding the purchase cost)
Chapter4: Operating Activities: Sales And Cash Receipts
Section: Chapter Questions
Problem 1.3C
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Question
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
1. Calculate the EOQ
2. Calculate the average inventory
3. Calculate the total annual ordering cost
4. Calculate the total annual inventory cost (excluding the purchase cost)
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