Elite Academic Institute 068 053 513 262 1185
ademic In
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Educating the world for a better change
,Elite Academic Institute 068 053 513 262 1185
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore, the documents provided here including past assignments, tests
and notes are intended SOLELY for educational purposes and as a guide to help
students understand academic concepts and improve their writing skills. These
materials should not be submitted as final work, as doing so may constitute academic
dishonesty. Students are encouraged to use them as reference points, develop their
own understanding and produce original work that reflects their knowledge and critical
thinking. Students are also encouraged to regenerate their own (personalized)
solutions paying particular attention to module contents as prescribed by module
facilitators, lecturers and supervisors. If this document is plagiarized by the users and
fails, ELITE ACADEMIC INSTITUTE should not be rendered accountable since the
contents in this document only give learners a kick-start on what is expected of them
from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE ALL THE INFORMATION IN
THIS DOCUMENT IN WRITING THEIR ASSIGNMENTS
Educating the world for a better change
, Elite Academic Institute 068 053 513 262 1185
QUESTION 1
1.1 REQUIRED Use the information given below to calculate the following:
Monthly sales: 3,750 units
Selling price per unit: R14
Purchase price: Cost plus 40% (meaning the selling price is 140% of cost)
Carrying cost: 10% of the unit purchase price
Ordering cost: R100 per order
1.1.1 Economic order quantity
Annual Demand (D)
Monthly sales = 3,750 units
Annual demand (D) = 3,750 × 12 = 45,000 units
Unit Purchase Price (P)
Selling price = R14 (which is 140% of cost)
14
So, cost (purchase price) = = 𝑅 10
1.4
Purchase price (P) = R10
Carrying Cost per Unit (H)
Carrying cost = 10% of purchase price = 0.10 × R10 = R1 per unit per year
Ordering Cost (S)
Ordering cost (S) = R100 per order
Educating the world for a better change
ademic In
Ac sti
te
tu
Eli
te
he
de
W
re a
G ra eM
d u a t e s Ar
Educating the world for a better change
,Elite Academic Institute 068 053 513 262 1185
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore, the documents provided here including past assignments, tests
and notes are intended SOLELY for educational purposes and as a guide to help
students understand academic concepts and improve their writing skills. These
materials should not be submitted as final work, as doing so may constitute academic
dishonesty. Students are encouraged to use them as reference points, develop their
own understanding and produce original work that reflects their knowledge and critical
thinking. Students are also encouraged to regenerate their own (personalized)
solutions paying particular attention to module contents as prescribed by module
facilitators, lecturers and supervisors. If this document is plagiarized by the users and
fails, ELITE ACADEMIC INSTITUTE should not be rendered accountable since the
contents in this document only give learners a kick-start on what is expected of them
from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE ALL THE INFORMATION IN
THIS DOCUMENT IN WRITING THEIR ASSIGNMENTS
Educating the world for a better change
, Elite Academic Institute 068 053 513 262 1185
QUESTION 1
1.1 REQUIRED Use the information given below to calculate the following:
Monthly sales: 3,750 units
Selling price per unit: R14
Purchase price: Cost plus 40% (meaning the selling price is 140% of cost)
Carrying cost: 10% of the unit purchase price
Ordering cost: R100 per order
1.1.1 Economic order quantity
Annual Demand (D)
Monthly sales = 3,750 units
Annual demand (D) = 3,750 × 12 = 45,000 units
Unit Purchase Price (P)
Selling price = R14 (which is 140% of cost)
14
So, cost (purchase price) = = 𝑅 10
1.4
Purchase price (P) = R10
Carrying Cost per Unit (H)
Carrying cost = 10% of purchase price = 0.10 × R10 = R1 per unit per year
Ordering Cost (S)
Ordering cost (S) = R100 per order
Educating the world for a better change
