Question: Chapter 12 - Inventory Use the following information to answer questions 16-20 A retail store dealing in computer hardware imports an enterprise model sold-state drive

Chapter 12 - Inventory Use the following
Chapter 12 - Inventory Use the following information to answer questions 16-20 A retail store dealing in computer hardware imports an enterprise model sold-state drive (SSD) at a fixed price of $1000 per unit from the sole distributer of the SSD and would place orders at the EOQ. On January 1, 2020, the store received an offer of 15% discount on orders of 300 or more units. The estimated sales for the year are expected to be 600 units, the cost incurred per order is $1000 and the average holding cost per unit per annum is estimated to be $120 per unit. The full price is likely to remain $1000 during the year. Please ignore opening and closing Inventories, safety stock etc. What was the EOQ before the discount offer? 3 marks 25 Units 300 Units 600 units 100 Units QUESTION 17 What is the annual total cost pad by the store prior to the discount? (nclude the cost of the drive in the calculation) 3 marks $600,000 $612,000 $12,000 $300,000

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