A publishing house purchases 2,000 units of a particular item per year at a unit cost of ₹ 20. The ordering cost per order is ₹ 50 and the inventory carrying cost is 25%. How will be the total cost if company decides to buy in EOQ?
A publishing house purchases 2,000 units of a particular item per year at a unit cost of ₹ 20

Q. A publishing house purchases 2,000 units of a particular item per year at a unit cost of ₹ 20. The ordering cost per order is ₹ 50 and the inventory carrying cost is 25%. How will be the total cost if company decides to buy in EOQ?

A.            41,325

B.            41,000

C.            41,500

D.            41,525

Answer: 41,000
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