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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Dusty Company
Sir in part A of this question they have taken holding cost per unit of 0.21 whereas it should have been 0.63 according to me and you as well(you had cleared a student’s doubt in previous forum)
My question is by using 0.63 i am getting a different answer than their solution..
I am getting
A (i) Holding cost = 62500*0.63= 39375
ordering =3124
Total = 42399
A (ii) EOQ = 34641 units
Holding cost= ordering cost=10911
Total = 21822
Therefore saving = 20577
Their saving = 17199
A (iii) Holding cost =0.63*125000= 78750
Ordering cost =6*252 = 1512
Total cost = 80262
Increase in annual holding and ordering cost= 80262- 42399 = 37863
Discount benefit = 1.5m*14*0.5% = 105000
Saving = 105000-37863 = 67137
Their saving=67399
Are my answers correct?
Kindly tell sir..Thanks a lot for ur help
Your answer looks to be correct. 🙂
Thank you sir!
You are welcome 🙂
