9. A company purchases 2000 units of a particular item per year at a unit cost of ₹20. The ordering cost is ₹50 per order and the inventory carrying cost is 25% on unit cost. What will be the total cost, if company decid

CS Executive · Cost and Management Accounting · PYQS · June 2021
9. A company purchases 2000 units of a particular item per year at a unit cost of ₹20. The ordering cost is ₹50 per order and the inventory carrying cost is 25% on unit cost. What will be the total cost, if company decides to buy on the basis of EOQ?
(A) ₹41325
(B) ₹41000
(C) ₹41500
(D) ₹41525

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Material Cost

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