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A firm requires 16,000 units of a certain component, which it buys at R60 each. The cost of placing an order and following it up

A firm requires 16,000 units of a certain component, which it buys at R60 each. The cost of placing an order and following it up is R120 and the annual holding cost is 10% of the cost of the item. Calculate the economic order quantity in units. Select one: a. 600 b. 900 c. 800 d. 1,000

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