Waec Model Questions Vol1 2022 Commerce Question 21
Practice objective / multiple choice question 21 from the 2022 Waec Model Questions Vol1 Commerce examination.
A company has an annual demand of 12,000 units for a product. The ordering cost is ₦500 per order. The holding cost is 25 % of the unit cost per year. The unit cost is ₦200, but if an order quantity exceeds 800 units the supplier offers a 5 % discount on the unit cost. The warehouse can hold at most 1,000 units. Determine the order quantity that minimises the total annual cost while respecting the warehouse capacity, and state the resulting total annual cost.
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About This Question
This is Waec Model Questions Vol1 2022 Commerce Question 21. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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