1)Eagle Corp. projects its sales to be 720,000 units this year. As a result of holding inventories,...
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Question:
1)Eagle Corp. projects its sales to be 720,000 units this year. As a result of holding inventories, insurance, storage, taxes and other cost are incurred amounted to P2 per unit per year. P50.00 is incurred, every time Eagle Corp. makes an order, On the average it takes 7 days to make and receive an order. (Use 360 days a year) What is the economic order quantity (EOQ)?
A)8,500
B)6,000
C)9,200
D)7,500
2)Squirtle Inc. borrowed an amount of P1,500,000 from a bank. The bank charges a 5% stated rate in an add-on arrangement, payable in 12 equal monthly instalment. What is the estimated effective interest rate on this installment loan?
A)9.23%
B)10.32%
C)11.11%
D)12.30%
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