Consider the following information: Market demand per month: 600 unitsSetting-up cost per batch:120Cost of manufacture per unit:30Rate of interest:…

CA Intermediate · Cost and Management Accounting · MTP · January 2026
Consider the following information: Market demand per month: 600 unitsSetting-up cost per batch:120Cost of manufacture per unit:30Rate of interest: 10% p.a. What is the EBQ?
(A) 758.95 units
(B) 848.53 units
(C) 268.33 units
(D) 1,200 units

Suggested Answer and Working Notes:

Correct Answer: Option (A)

758.95 units

Topics: Unit & Batch Costing

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