Cost and Management AccountingMCQQuestion 6175 of 249
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12. In the automotive machine manufacturing sector, a component is manufactured. The Economic Order Quantity (EOQ) for the component is 1,500 units. The cost of placing an order is ₹ 100, and the carrying cost per annum is 10%. The cost per unit of component is ₹ 20. Calculate the annual demand for this specific automative component.

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — 45,500 units

All Options:

  • A45,500 units ✓
  • B75,000 units
  • C36,000 units
  • D22,500 units

Detailed Solution & Explanation

Correct Answer: Option **A** Explanation: As per the official suggested answer, option **A** is correct. Hence, **Option A** is the correct answer.

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