Solution-What total cost of ordering each year will be

What total cost of ordering each year will be

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Reference no: EM132550672

The Digitech Co. Ltd requires 80,000 units per annum of a certain component for its manufacturing process. The Economic Order Quantity for Digitech Co Ltd is 1600 units.The estimated cost per order is $8, and the carrying cost is $0.50 per unit.

Question 1: Total cost of ordering and carrying the components each year will be:

Select one:

Option a. $400

Option b. $1600

Option c. $800

Option d. $1,000

Reference no: EM132550672

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What total cost of ordering each year will be

Reference no: EM132550672

Reference no: EM132550672

Questions Cloud

Reviews

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Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

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