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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=EE = E conomic order quantity (EOQ)
Q=\mathrm { Q } = Annual quantity used in units \quad \quad \quad \quad \quad 3000
P=P = Cost of placing one order ( (£) ( £ ) \quad \quad \quad \quad \quad 10
C=AC = 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 2,500 units the economic order quantity (EOQ) is


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

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