Peekay Company Ltd has been buying a given item in lots of 1,200 units which is a

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Peekay Company Ltd has been buying a given item in lots of 1,200 units which is a six months’

supply, the cost per unit is ₹12, order cost is ₹8 per order, and carrying cost is 25 per cent. You are required to calculate the savings per year by buying in economical lot quantities.

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Management Accounting Text Problems And Cases

ISBN: 9781259026683

6th Edition

Authors: M Y Khan, P K Jain

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Question Posted: Mar 05, 2024 04:00 AM

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Peekay Company Ltd has been buying a given item in lots of 1,200 units which is a

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EOQ 2 ABC2x 2400x83 114 units Total carrying cost 2400 x 12 x 25100 7200 7200 2400 units 3 ...View the full answer

Management Accounting Text Problems And Cases

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