Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 420 boxes per month (four weeks). It costs RO 100 to make and receive an order and holding cost is RO 3.5 per box per year. The prices per unit depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. What is the Economic Order Quantity while not consider the purchase cost? Round-up to the nearest integer Select one: O a. 537 O b. 170 Oc 199 Od. 166 e. None is correct

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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16/ Do not solve it in excel, please.
Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 420 boxes
per month (four weeks). It costs RO 100 to make and receive an order and holding cost is RO 3.5
per box per year. The prices per unit depend on quantities purchased such that the order
quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and
quantity 500 and more at a per unit price of 4 RO. What is the Economic Order Quantity while not
consider the purchase cost? Round-up to the nearest integer
Select one:
O a. 537
b. 170
O c. 199
O d. 166
e. None is correct
Transcribed Image Text:Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 420 boxes per month (four weeks). It costs RO 100 to make and receive an order and holding cost is RO 3.5 per box per year. The prices per unit depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. What is the Economic Order Quantity while not consider the purchase cost? Round-up to the nearest integer Select one: O a. 537 b. 170 O c. 199 O d. 166 e. None is correct
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