Evaluate the number of units you need to order in each lot for given data. Demand =500

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Evaluate the number of units you need to order in each lot for given data. Demand =500 units/yr. Fixed order cost of Rs. 500/per order. Holding cost-25%. The price charged by the supplier follows the all unit discount pricing

Order quantity

Unit Price

0-49

Rs. 1000

50-99

Rs. 900

Over 99

Rs.800

Related Book For answer-question

Cost Management Accounting and Control

ISBN: 978-0324559675

6th Edition

Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan

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Posted Date: Jun 15, 2023 01:43 AM

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Evaluate the number of units you need to order in each lot for given data. Demand =500

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SOLUTION To determine the optimal order quantity we can use the economic order quantity EOQ formula ... View the full answer

Cost Management Accounting and Control

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