Question
Entrepreneurship Question on The elasticity of demand and its measurement
A seller sells 30000 units of a product per year, demand is uniform. Purchase cost is Rs. 6/- per product. Holding cost per annum is 20% of purchase cost. Ordering cost is Rs.500/- per order. What would be the Economic Order Quantity?
A
5000 units
B
5500 units
C
5200 units
D
4800 units
Answer
5000 units
Explanation
Solution
The correct option is (A) : 5000 units