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ordering cost

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › ordering cost

  • This topic has 0 replies, 1 voice, and was last updated 11 years ago by toniwoni20.
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  • February 7, 2015 at 7:20 am #225639
    toniwoni20
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    1. You are given the following information:

    EOQ 800 units
    Annual demand 6400 units
    Unit cost $7.00
    Carrying costs 15% per annum

    The ordering cost per order is

    $1.05
    $6720
    $52.50
    cannot be determined
    none of the above

    I know the annual order cost is D/Q*Co
    But this question is asking for the ordering cost per order
    I tired working it out and I just can’t get the answer

    I did D/Q which was 6400/800 In which I got 8 Is the number of orders

    Then I took the 8*7.00= 56 which is wrong I need I little help please

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