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a management accountant at Octopus Limited has estimated that 20 000 units of a component...

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Accounting

a management accountant at Octopus Limited has estimated that 20 000 units of a component used in the company's production process will be required every month next year. The cost of placing an order and the holding cost per unit are projected to be R30 and R2.00 respectively throughout next year. The unit cost of the component next year is R298 and the stored components are insured at a cost of 1% of the cost unit. what is the economic order quantity? A. 2 198 units B. 775 units C. 2683 units D. 1700 units

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