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Hello
If EOQ is 3794
2% discount is 4200
2.5% discount is 5300Extra cost of ordering for 2% is 4200-3794
And for 2.5% is 5300-4200
My doubt is shouldn’t we compare it with EOQ.i.e 5300-3794, can you please clarify my doubt?
You have not explained what your original figures represent.
If the EOQ is 3794, then this is the number of units ordered each time. It is not a cost!!
I suggest that you watch my free lectures on this.
The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.
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