Please calculate the Economic Order Quantity under the following scenario: Annual demand= 80,000, Order cost = 31, Product unit cost = 20 and Holding cost = 4 (or 20% of Product unit cost)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4EB: A product has a sales price of $90 and a per-unit contribution margin of $30. What is the...
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Please calculate the Economic Order Quantity under the following scenario:
Annual demand= 80,000, Order cost = 31, Product unit cost = 20 and Holding cost = 4 (or 20% of Product unit cost)
Transcribed Image Text:Please calculate the Economic Order Quantity under the following scenario: Annual demand= 80,000, Order cost = 31, Product unit cost = 20 and Holding cost = 4 (or 20% of Product unit cost)
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