A company requires 1,500 units of an item per month. The cost of each unit is ₹30. The cost of placing an order is ₹200 and the material carrying charges work out to be 20% of the average material. The economic order qua

CS Executive · Cost and Management Accounting · PYQS · June 2015
A company requires 1,500 units of an item per month. The cost of each unit is ₹30. The cost of placing an order is ₹200 and the material carrying charges work out to be 20% of the average material. The economic order quantity (EOQ) is —
(A) 1,095 units
(B) 316 units
(C) 490 units
(D) 33 units.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Inventory Control

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