Neco 2020 Commerce Question 21
Practice objective / multiple choice question 21 from the 2020 Neco Commerce examination.
A retailer orders a product with an annual demand of \(12{,}000\) units. The ordering cost is \(\mathrm{₦}500\) per order. Holding cost consists of \(20\%\) of the unit cost per year plus a fixed warehousing charge of \(\mathrm{₦}2{,}000\) per year. The total annual cost (excluding purchase cost) is minimized when the order quantity is \(600\) units. Determine the unit cost of the product (in ₦, rounded to two decimal places).
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About This Question
This is Neco 2020 Commerce Question 21. It is one of the objective questions from the 2020 Neco Commerce examination.
Difficulty level: Hard .
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