Newcastle Company Has Determined the Following Costs Are Associated with One

question 31

Multiple Choice

Newcastle 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 $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 3000
$P =$ Cost of placing one order ( $( £ )$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 10
$C = A$ nnual cost of carrying one unit in stock (£) $\quad$ 0.8
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If the cost of placing an order is increased to £15 and the annual quantity used in units decreases to 2,000 units the economic order quantity (EOQ) is

• A)274 units.
• B)215 units.
• C)450 units.
• D)106 units.