15. MM Co. expects total sales of P10,000. The price per unit is P5. The firm estimates an ordering cost of P7.50 per order, with an inventory cost of PO.70 per unit. What is the optimum order size? A. 147 units C. 327 units B. 207 units D. 463 units

15. MM Co. expects total sales of P10,000. The price per unit is P5. The firm estimates an ordering cost of P7.50 per order, with an inventory cost of PO.70 per unit. What is the optimum order size? A. 147 units C. 327 units B. 207 units D. 463 units

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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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

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15. MM Co. expects total sales of P10,000. The price per unit is P5. The firm estimates an ordering cost of P7.50 per
order, with an inventory cost of PO.70 per unit. What is the optimum order size?
A. 147 units
C. 327 units
D. 463 units
B. 207 units

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