Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Opportunity

Question:

A vendor deals in toothpaste and sells ₹1,00,000 units per month. Purchase price of each toothpaste is ₹20 each. Holding cost is 20% of purchase price. Ordering cost is 500 per order. Find E.O.Q. (Economic Order Quantity)

Options:

140 Units

40 Units

400 Units

5000 Units

Correct Answer:

5000 Units

Explanation:

The correct answer is option (4) - 5000 Units