Neco Model Questions Vol1 2019 Commerce Question 1
Practice objective / multiple choice question 1 from the 2019 Neco Model Questions Vol1 Commerce examination.
Company X forecasts an annual demand of 12,000 units for a product. The ordering cost is ₦500 per order. The holding cost is 10\% of the unit cost per year. The supplier offers quantity discounts as follows: - 1-199 units: unit cost ₦150 - 200-499 units: 5\% discount on the unit cost - 500-999 units: 10\% discount on the unit cost - 1,000 units or more: 12\% discount on the unit cost Determine the order quantity that minimises the total annual cost (ordering + holding + purchase). State the optimal order quantity.
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About This Question
This is Neco Model Questions Vol1 2019 Commerce Question 1. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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