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The Management Accountant of Prince & Porter Plc Has Worked

Question 6

Multiple Choice

The management accountant of Prince & Porter plc has worked out that the demand for the period for inventory item BB774 is 900 units.The holding cost per unit is £3.75 and the order cost is £10 per order.What is the Economic Order Quantity (to the nearest whole unit) ?


A) 26 units
B) 35 units
C) 69 units
D) 49 units

Correct Answer:

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