Norwich Company Has Determined the Following Costs Are Associated with One

question 39

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 decreases to 14,000 units the economic order quantity (EOQ) is

• A)1222 units.
• B)1122 units.
• C)1000 units.
• D)1025 units.

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Definitions:

Partnership

A form of business organization; specifically, an association of two or more persons to carry on a business as co-owners for profit.

Leases

Contracts in which one party, the lessor, grants another party, the lessee, the right to use an asset for a specified period in return for regular payments.

Property

Legally recognized rights to possess, use, and dispose of something tangible or intangible.

Partnership

A legal arrangement where two or more individuals share the ownership, profits, and liabilities of a business.