H&M chief demand planner has estimated that 9250,000 units of clothing sold in 2021.H&M cost of placing and processing an ordee is R250 ,while the annual cost of holding a unit in its didtribution center is projected at 5% of the unit purchase price.Both costs are expected to be constant for the foreseeable future.on average H&M sells a unit of clothing for R300 at cost plus 50%.Orders are received two weeks after being placed with the supplier.Assume 365 day year and that demand is constant throughout the year.Calculate the economic order quantity?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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H&M chief demand planner has estimated that 9250,000 units of clothing sold in 2021.H&M cost of placing and processing an ordee is R250 ,while the annual cost of holding a unit in its didtribution center is projected at 5% of the unit purchase price.Both costs are expected to be constant for the foreseeable future.on average H&M sells a unit of clothing for R300 at cost plus 50%.Orders are received two weeks after being placed with the supplier.Assume 365 day year and that demand is constant throughout the year.Calculate the economic order quantity?

 

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