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Use the information below to answer the following questions
Aqua Ltd has forecast the yearly demand for its product as 5,000 units. 100 units of material must be used to produce the product. The cost of placing a single order for raw materials is $20, and the cost of holding one unit of material is $0.40 a year.
-Refer to the information above. The economic order quantity for raw materials is:
Variable Overhead
Expenses that vary depending on the amount of production or business operations, like utilities or raw materials.
Direct Materials
Ingredients that are specifically identifiable in the creation of a certain product.
Direct Labor-Hours
The broad sum of hours dedicated by workers directly in the manufacturing workflow.
Variable Overhead
Indirect production costs that vary with the level of output, such as utilities for a manufacturing plant.
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