A certain type of computer costs $10 per unit, and the annual holding cost is 25% of the value of the item. Annual demand is 1,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?

EOQ = 35

Explanation:

EOQ: To calculate the optimum level of quantity to be ordered so we don't mismatch the demand in order to control the cost.

Formula:

Where;

D= Annual demand per unit.

S = Cost per order.

H= Holding cost, which is calculated by Holding cost % into total units

Given Data:

D= 1000 units.

S= $150.

H= 25% * 1000 = $250

Putting the values into the formula:

EOQ = 35

answer; ///i believe the best answer from the above question is (c) a method of making a purchase by trading items instead of using money; plz check first.good luck

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total