A firm requires 12,800 units of a certain component which it buys @ Rs. 60 each. The cost of placing an order and following it up is Rs. 150 and annual storage charges work out to 10% of the cost of items. The number of units to be ordered to get maximum benefit to the firm are

A firm requires 12,800 units of a certain component which it buys

Q. A firm requires 12,800 units of a certain component which it buys @ Rs. 60 each. The cost of placing an order and following it up is Rs. 150 and annual storage charges work out to 10% of the cost of items. The number of units to be ordered to get maximum benefit to the firm are

A.            1,000

B.            900

C.            800

D.            320

Answer: 800

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