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Q. A company manufactures 5,000 units of a product per month. The cost of placing an order is ₹ 100. The purchase price of the raw material is ₹ 10 per kg. The average consumption of raw material is 275 kg per week. The carrying cost of inventory is 20% per annum. The economic order quantity is___
A. 1,196 kg
B. 707 kg
C. 2,449 kg
D. 2,400 kg
Answer: 1,196 kg