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What is the total cost, including purchase price

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Question - ABC Company uses EOQ to determine the order quantity for its various components and is planning its orders. The annual consumption is 80,000 units, cost to place on order is P 1,200, cost per unit is P 50 and carrying cost is 6% of unit cost. Find EOQ, No. of order per year, ordering cost and carrying cost and total cost of inventory.

What is the total cost, including purchase price of the inventory?

What is the total inventory cost (exclusive of purchase price) for 4,000 units?

Reference no: EM132950188

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