Norwich Company Has Determined the Following Costs Are Associated with One

question 5

Multiple Choice

Norwich Company has determined the following costs are associated with one of its products. $E = E$ conomic order quantity (EOQ)
$\mathrm { Q } =$ Annual quantity used in units $\quad$ $\quad$ $\quad$ $\quad$$\quad$ 4800
$P =$ Cost of placing one order (f) $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 3
$\mathrm { C } = \mathrm { A }$ nnual cost of carrying one unit in stock (E) $\quad$ 8

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If the cost of carrying one unit in stock is increased to £4 and the annual quantity used in units increases to 20,000 units the economic order quantity (EOQ) is

• A)1225 units.
• B)568 units.
• C)1235 units.
• D)1866 units.

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Definitions:

Population Coefficient

A parameter that represents a characteristic or measure of an entire population.

Significance Level

A statistical term that measures the probability of rejecting the null hypothesis when it is actually true, often denoted by alpha (α).

Higher Sales

An increase in the quantity of goods or services sold, often regarded as a key indicator of business performance and growth.

Gross Revenue

The total amount of money earned by a business from its sales before any costs or expenses are subtracted.