In the automotive machine manufacturing sector, a component is manufactured. The Economic Order Quantity (EOQ) for the component is 1,500 units. The…
CA Intermediate · Cost and Management Accounting · PYQS · September 2024
In the automotive machine manufacturing sector, a component is manufactured. The Economic Order Quantity (EOQ) for the component is 1,500 units. The cost of placing an order is 100, and the carrying cost per annum is 10%. The cost per unit of component is 20. Calculate the annual demand for this specific automative component.
Suggested Answer and Working Notes:
Correct Answer: Option (D)
22,500 units
Topics: Material Cost
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