A FMCG company has an annual demand of 50,000 units for its specific product whose setting up cost per batch is 10,000 and carrying cost per unit…

CA Intermediate · Cost and Management Accounting · MTP · September 2024
A FMCG company has an annual demand of 50,000 units for its specific product whose setting up cost per batch is 10,000 and carrying cost per unit per month is 1. What is the Economic Batch Quantity?
(A) 7,071 units
(B) 10,000 units
(C) 12,641 units
(D) 9,129 units

Suggested Answer and Working Notes:

Correct Answer: Option (D)

9,129 units

Topics: Unit & Batch Costing

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