EOQ and Quantity Discount, a particular material is purchased for $3 per unit. Monthly usage is 1,500

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EOQ and Quantity Discount, a particular material is purchased for $3 per unit. Monthly usage is 1,500 units, the ordering cost is $50 per order, and the annual carrying cost is 40%. LO2 Required:

(1) Compute the economic order quantity.

(2) Determine the proper order size if the material can be purchased at a 5% discount in lots of 2,000 units.

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Cost Accounting

ISBN: 9780538828079

11th Edition

Authors: Lawrence H. Hammer, William K. Carter, Milton F. Usry

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Question Posted: Jul 02, 2024 09:06 AM

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EOQ and Quantity Discount, a particular material is purchased for $3 per unit. Monthly usage is 1,500

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Cost Accounting

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