Waec Model Questions Vol1 2025 Commerce Question 33
Practice objective / multiple choice question 33 from the 2025 Waec Model Questions Vol1 Commerce examination.
A wholesale firm faces an annual demand of 12,000 units for a product. The ordering cost per order is ₦4,500 and a handling charge of ₦1,200 is added to each order. The unit cost is ₦1,800 and the holding cost is 25 % of the unit cost per year. The warehouse can hold at most 1,500 units at any time. Moreover, for each unit stored above 1,000 units, an extra space surcharge of ₦0.50 per unit per year is incurred. Determine the order quantity (in units) that minimizes the total annual cost while respecting the capacity limit.
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This is Waec Model Questions Vol1 2025 Commerce Question 33. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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