Neco Model Questions Vol1 2017 Commerce Question 47
Practice objective / multiple choice question 47 from the 2017 Neco Model Questions Vol1 Commerce examination.
A retailer stores a product in a warehouse. Annual demand is 12,000 units and the ordering cost per order is ₦15,000. The holding cost is \(25\%\) of the unit cost per year. The unit cost is unknown. The Economic Order Quantity (EOQ) is given by \(Q=\sqrt{\dfrac{2DS}{H}}\) where \(D\) is demand, \(S\) is ordering cost and \(H\) is holding cost per unit. Because the warehouse can hold at most 800 units, the EOQ must not exceed 800. Determine the minimum unit cost (in ₦) that satisfies this condition and give the corresponding EOQ.
Answer Options
About This Question
This is Neco Model Questions Vol1 2017 Commerce Question 47. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.