Question: Answer below question. Cost Accounting Mwaura uses the EOQ formula to establish its optimal reorder quantity for its single new material. The following data relates

Answer below question.

Cost Accounting

Mwaura uses the EOQ formula to establish its optimal reorder quantity for its single new material.

The following data relates to the stock costs

P = Shs 25 per item

Ch = Shs70 per order

Co = Shs7 per order Storage

costs = 10% of P + Shs0.30 per unit p.a.

D = 4,200 units

Required

Calculate the economic order quantity

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