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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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