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ABC ltd uses 6250 kg of raw material per year. It costs RM10 to hold...

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Question

Accounting

ABC ltd uses 6250 kg of raw material per year. It costs RM10 to hold 1 kg for

One year, and the costs of ordering each consignment of raw materials are

RM200.

Calculate the following:

a) The reorder quantity/ EOQ/ ROQ
b) Ordering Cost
c) Holding Cost
d) Total cost of stock

Answer & Explanation Solved by verified expert
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