Page 100 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 100
Chapter 5
Test your understanding 1
The following information relates to the forthcoming period:
Order costs = $20 per order
Holding costs = 10% of purchase price
Annual demand = 10,000 units
Purchase price = $20 per unit
Order quantity = 250 units
What are the total annual costs of inventory?
A $201,050
B $201,300
C $220,000
D $420,000
Illustrations and further practice
Now try TYU question 4 from Chapter 5
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