Newcastle Company Has Determined the Following Costs Are Associated with One

question 17

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
-
If the cost of placing an order is increased to £15 and the annual quantity used in units decreases to 2,500 units the economic order quantity (EOQ) is

• A)335 units.
• B)315 units.
• C)320 units.
• D)306 units.

---

Definitions:

Sales Dollars

The total monetary value of sales transactions made within a specific period, reflecting the revenue generated from selling goods or services.

Common Fixed Expenses

Regular, unchanged expenses that a business incurs, regardless of the level of production or sales volume.

Break-even

The point at which total costs and total revenue are equal, indicating that a business makes neither a profit nor a loss.

Sales Dollars

The total revenue generated from goods or services sold by a company, measured in dollar terms.