With a(n) _______ financial statement, the accountant has put the information into the required format and performed a limited r
1 answer:
You might be interested in
Answer:
option (c) $500
Explanation:
Data provided in the question:
Demand, D = 500 vats of fertilizers
Cost, C = $1
Ordering costs for a new order, F = $250
Now,
Economic Order Quantity =
on substituting the respective values, we get
Economic Order Quantity =
or
Economic Order Quantity = √250,000
or
Economic Order Quantity = 500
Cost of Economic Order Quantity = 500 × $1 = $500
Hence,
the answer is option (c) $500