The annual demand for a component is 2,000 units. The set-up cost per batch and the carrying cost per unit per annum are respectively ₹100 and ₹10. The Economic Batch Quantity is : (A) 200 units (B) 300 units (C) 400 uni

CS Executive · Cost and Management Accounting · PYQS · December 2017
The annual demand for a component is 2,000 units. The set-up cost per batch and the carrying cost per unit per annum are respectively ₹100 and ₹10. The Economic Batch Quantity is : (A) 200 units (B) 300 units (C) 400 units (D) 166.67 units
(A) 200 units
(B) 300 units
(C) 400 units
(D) 166.67 units

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Batch Costing

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