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The sale price of a unit of product is OMR 10 while purchase price OMR 7. The normal demand for the product is 250 units per week. Company has to spend around OMR 300 each time for buying a group of units. Store manager has estimated per unit storage expense @ 2 % purchase cost. The economic order quantity for the business will be: None of these 2,500 units 3,000 units Next page 3,586 units

The sale price of a unit of product is OMR 10 while purchase price OMR 7. The normal demand for the product is 250 units per week. Company has to spend around OMR 300 each time for buying a group of units. Store manager has estimated per unit storage expense @ 2 % purchase cost. The economic order quantity for the business will be: None of these 2,500 units 3,000 units Next page 3,586 units

FINANCIAL ACCOUNTING
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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The sale price of a unit of product is OMR 10 while purchase price OMR 7. The normal demand for the product is 250 units per week. Company has to spend around OMR 300 each time for buying a group of units. Store manager has estimated per unit storage expense @ 2 % purchase cost. The economic order quantity for the business will be: None of these 2,500 units 3,000 units Next page 3,586 units
Transcribed Image Text:The sale price of a unit of product is OMR 10 while purchase price OMR 7. The normal demand for the product is 250 units per week. Company has to spend around OMR 300 each time for buying a group of units. Store manager has estimated per unit storage expense @ 2 % purchase cost. The economic order quantity for the business will be: None of these 2,500 units 3,000 units Next page 3,586 units
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