Suggest the correct option to calculate

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Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Opportunity

Question:

Suggest the correct option to calculate reorder formula:

Options:

Average daily usage rate × per unit cost

Variable cost × Lead time in days

Average daily usage rate × Lead time in days

Lead time in days × total cost

Correct Answer:

Average daily usage rate × Lead time in days

Explanation:

The correct answer is Option (3) → Average daily usage rate × Lead time in days