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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › materials

  • This topic has 2 replies, 3 voices, and was last updated 3 years ago by abdiaziz1.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • February 9, 2022 at 2:26 pm #648362
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 0
    • ☆

    Moura uses the economic order quantity formula (EOQ) to establish its optimal
    reorder quantity for its single raw material. The following data relates to the stock
    costs:
    Purchase price: $15 per item
    Carriage costs: $50 per order
    Ordering costs: $5 per order
    Storage costs: 10% of purchase price plus $0·20 per unit per annum
    Annual demand is 4,000 units.

    What is the EOQ to the nearest whole unit?

    A 153 units
    B 170 units
    C 485 units
    D 509 units.

    February 9, 2022 at 3:37 pm #648368
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    There is no point in simply typing out a full question and expecting to be provided with a full answer. You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.

    (If you do not have an answer for some reason then type out your own answer and I will tell you whether or not you are correct. Everything needed to answer this question is explained in my free lectures. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.)

    February 11, 2022 at 10:36 am #648457
    abdiaziz1
    Participant
    • Topics: 29
    • Replies: 30
    • ☆☆

    thank you very much I thought it may be a good idea to have a go at this question although it came from another student.

    my answer is 153 is it correct please. Thanks.

  • Author
    Posts
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