A publishing house purchases 2,000 units of a particular item per annum at a unit cost of

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A publishing house purchases 2,000 units of a particular item per annum at a unit cost of Rs. 20. The ordering cost per order is Rs. 50 and the inventory carrying cost is 25%.

(a) Find the optical order quantity and the minimum total cost including purchase cost.

(b) If 3% discount offered by the supplier for the purchase in lots of 1,000 units or more, should the publishing house accept the offer?

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Cost Accounting

ISBN: 9788131732076

1st Edition

Authors: V. Rajasekaran, R. Lalitha

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Question Posted: Jun 12, 2024 10:13 AM

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A publishing house purchases 2,000 units of a particular item per annum at a unit cost of

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Cost Accounting

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