Newcastle Company Has Determined the Following Costs Are Associated with One

question 40

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 increases to 4,000 units, the economic order quantity (EOQ) is

• A)387 units.
• B)435 units.
• C)450 units.
• D)109 units.

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Definitions:

Quantitative Distinctions

Differences or characteristics that can be measured and expressed numerically, often used in research to classify or analyze data.

Measurement Scale

A system for assigning numbers to objects or events according to a set of rules, illustrating quantities or qualities.

Subjects Preferences

The personal likes or choices of the individuals participating as subjects in a study.

Ranks

A method of data representation that assigns numerical order from the lowest to the highest according to each element's value or position in a distribution.