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ABC Company`s EOQ for its raw materials is 1,500 units. The EOQ is based on annual demand of 15,000 units. The ordering cost is P25.
Required:
Problem 1: Determine the total ordering costs for the year.
Calculate the breakeven point. Be sure to include the fixed component of mixed cost in your fixed costs and the variable component in the variable cost.
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Company wants to establish a safety stock level that total stockout costs and carrying costs do not exceed P110, is the given safety tock level be recommended
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