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Determine the number of times the raw material be ordered

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Reference no: EM132577198

The KMT Corporation determines the manufacturing cost per order of a raw material is P25. The company expects to use P50,000 of this material in the coming year. Its carrying charge is 10% of inventory.

Determine the following:

Required:

Question 1. Economic order quantity in pesos

Question 2. Number of times the raw material be ordered in the coming year

Question 3. Average inventory

Question 4. Total relevant inventory costs at EOQ

Reference no: EM132577198

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