What is National's estimated annual usage in units? * Format: 1, 111, 111 National Co. has determined the following for a given year: Economic order quantity (standard order size) 10,000 units Total cost to place purchase orders for the year P20,000 Cost to place one purchase order P100 Cost to carry one unit for one year P4

2,000,000

Step-by-step explanation

We use this formula but derive to get the answer

EOQ= √ 2 D x S/ H

S= COST PER ORDER

H=HOLDING COST

D=ANNUAL DEMAND

LET X be D, ANNUAL DEMAND 

EOQ= √ 2 D x S/ H

10,000= √  2 X x  100/4

The equation is Raised to 2 to cancel the square root

( 10,000= √  200x/4  ) ²

multiply whole equation by 4

(100,000,000 = 200x/4 ) x 4

400,000,000 = 200x 

divide whole equation by 200

( 400,000,000 = 200x ) / 200

x= 2,000,000

CHECK

EOQ= √ 2 D x S/ H

10,000= √  2 x 2,000,000 x  100/4

10,000=√400,000,000/4

10,000=√100,000,000

10,000=10,000