to sell 800 alarm systems each month of 2022 at R4 000 each. The cost price of each The inventory holding cost of an alarm system is 1% of the unit cost price. The cost of alarm systems is estimated at R60.
to sell 800 alarm systems each month of 2022 at R4 000 each. The cost price of each The inventory holding cost of an alarm system is 1% of the unit cost price. The cost of alarm systems is estimated at R60.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate the annual economic order quantity from the attached provided below
![GM Electronics expects to sell 800 alarm systems each month of 2022 at R4 000 each. The cost price of each
alarm system is R2 000. The inventory holding cost of an alarm system is 1% of the unit cost price. The cost of
placing an order for the alarm systems is estimated at R60.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc2c8664d-e566-492b-b955-e9a2cbb36ccf%2Fe189b9ab-b578-406e-8fcc-6c612a2b9c5b%2Fg1gfuh1_processed.png&w=3840&q=75)
Transcribed Image Text:GM Electronics expects to sell 800 alarm systems each month of 2022 at R4 000 each. The cost price of each
alarm system is R2 000. The inventory holding cost of an alarm system is 1% of the unit cost price. The cost of
placing an order for the alarm systems is estimated at R60.
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