A retailer sells 25,000 units of a particular product each year and the demand for the product is even throughout the year. The purchase price of the product is $4 per unit. The cost of placing each order for the product is $10, the cost of holding one unit in stock for one year is $2 and the economic order quantity is 500 units.

What is the total annual cost of trading in this particular product?

Answer rating: 100% (QA)

To calculate the total annual cost of trading in this particular product we need to consider both th... View the full answer