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

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