Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Curacha Company uses 20, 000 units of Material A in making finished product. The cost to place one order for Material A is P8.

The Curacha Company uses 20, 000 units of Material A in making finished product. The cost to place one order for Material A is P8. 00 and the annual cost to carry one Material A is P2.00

  1. The economic order quantity for Material A is

a. 100 units

b. 400 units

c. 283 units

d. 565 units

  1. The cost to place one order increased by P10 and the cost to carry one Material A in stock remains the same, the economic order quantity will be

a. 600 units

b. 447 units

c. 425 units

d. 560 units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Technology Auditing

Authors: James A. Hall

4th edition

1133949886, 978-1305445154, 1305445155, 978-1133949886

More Books

Students also viewed these Accounting questions