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Norwich Company Has Determined the Following Costs Are Associated with One

Question 17

Multiple Choice

Norwich Company has determined the following costs are associated with one of its products. E=EE = E conomic order quantity (EOQ)
Q=\mathrm { Q } = Annual quantity used in units \quad \quad \quad \quad \quad 4800
P=P = Cost of placing one order (f) \quad \quad \quad \quad \quad \quad 3
C=A\mathrm { C } = \mathrm { A } nnual cost of carrying one unit in stock (E) \quad 8

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If the cost of carrying one unit in stock is increased to £4 and the annual quantity used in units decreases to 14,000 units the economic order quantity (EOQ) is


A) 1222 units.
B) 1122 units.
C) 1000 units.
D) 1025 units.

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