Calculate EOQ Annual Demand = 5,000 units Unit price = `Rs 20.00 Order cost = ` Rs16.00 Storage rate = 2% per annum on unit price Interest rate = 12% per annum on unit price Obsolescence rate = 6% per annum on unit price

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Calculate EOQ

  • Annual Demand = 5,000 units
  • Unit price = `Rs 20.00
  • Order cost = ` Rs16.00
  • Storage rate = 2% per annum on unit price
  • Interest rate = 12% per annum on unit price
  • Obsolescence rate = 6% per annum on unit price
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