AC401 ASSIGNMENT 1 2025
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A
POSSIBLE SOLUTION TO THE TASK CONSISTENT WITH THEORY OF AC401.
THIS REPORT IS INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH
THEIR ASSIGNMENT, AND IN NO CASE THIS DOCUMENT SHOULD BE USED
FOR CHEATING. WE BELIEVE THIS WILL BE A GOOD STARTING POINT AS IT
WAS PREPARED BY OUR TEAM OF PROFESSIONAL PRIVATE TUTORS WHO
ARE EXPERTS IN THE FIELD, AND IT WAS PREPARED USING VARIOUS
SOURCES. ANY SIMILARITY WITH ANY EXISTING THEORY OR DISCUSSION BY
OTHER AUTHORS IS EXCUSED. THE AUTHORS HOWEVER DO NOT CLAIM
MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF THE ANSWERS
CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY FURTHER
GUIDELINE ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE
IN GENERAL, CONTACT PASSMATE TUTORIALS.
WE ASSIST WITH OTHER MODULES INCLUDING:
ECSs, FACs, MACs, MNGs, INTs, TRLs, HMEMS, PRMs, PROs, MNBs, DSC, QMI,
MNMs, MNO, MNPs, FIN, PUBs, MNMs, RESEARCH among others.
WE OFFER CLASSES, ASSIGNMENT GUIDELINES, EXAMINATION
PREPARATION, RESEARCH AND RESEARCH PROPOSALS, DISSERTATION
EDITING etc.
OTHER THAN UNISA, WE ALSO ASSIST STUDENTS AT VARIOUS INSTITUTIONS
INCLUDING MANCOSA, REGENT, REGEYNESES, BOSTON, STADIO, OLG, UJ,
UP etc
For any enquiries the following numbers can be used for calling, sms, whatsapp and
telegram
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 or
email
,AC401 ASSIGNMENT 1 2025
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
, AC401 ASSIGNMENT 1 2025
2𝐷𝑆
Economic Order Quantity (EOQ) =√ 𝐻
Where:
D = Annual demand = 45,000
S = Ordering cost = 100
H = Carrying cost per unit = 1
2×45000×100
EOQ = √ = √9000000 = 3,000 units
1
Answer: EOQ = 3,000 units
1.1.2 The number of orders to be placed annually based on the economic order
quantity
𝐷 45,000
Number of orders = 𝐸𝑂𝑄 = = 15
3,000
1.1.3 The total ordering costs and total carrying costs.
Total ordering cost = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑜𝑟𝑑𝑒𝑟𝑠 × 𝑂𝑟𝑑𝑒𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑜𝑟𝑑𝑒𝑟 = 15 ×
100 = 𝑅1,50015 × 100 = 𝑅1,500
Total carrying cost = Average inventory × Carrying cost per unit
𝐸𝑂𝑄 3,000
Average inventory = = = 1,500 𝑢𝑛𝑖𝑡𝑠
2 2
Total carrying cost = 1,500 × 1 = 𝑅1,500
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A
POSSIBLE SOLUTION TO THE TASK CONSISTENT WITH THEORY OF AC401.
THIS REPORT IS INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH
THEIR ASSIGNMENT, AND IN NO CASE THIS DOCUMENT SHOULD BE USED
FOR CHEATING. WE BELIEVE THIS WILL BE A GOOD STARTING POINT AS IT
WAS PREPARED BY OUR TEAM OF PROFESSIONAL PRIVATE TUTORS WHO
ARE EXPERTS IN THE FIELD, AND IT WAS PREPARED USING VARIOUS
SOURCES. ANY SIMILARITY WITH ANY EXISTING THEORY OR DISCUSSION BY
OTHER AUTHORS IS EXCUSED. THE AUTHORS HOWEVER DO NOT CLAIM
MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF THE ANSWERS
CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY FURTHER
GUIDELINE ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE
IN GENERAL, CONTACT PASSMATE TUTORIALS.
WE ASSIST WITH OTHER MODULES INCLUDING:
ECSs, FACs, MACs, MNGs, INTs, TRLs, HMEMS, PRMs, PROs, MNBs, DSC, QMI,
MNMs, MNO, MNPs, FIN, PUBs, MNMs, RESEARCH among others.
WE OFFER CLASSES, ASSIGNMENT GUIDELINES, EXAMINATION
PREPARATION, RESEARCH AND RESEARCH PROPOSALS, DISSERTATION
EDITING etc.
OTHER THAN UNISA, WE ALSO ASSIST STUDENTS AT VARIOUS INSTITUTIONS
INCLUDING MANCOSA, REGENT, REGEYNESES, BOSTON, STADIO, OLG, UJ,
UP etc
For any enquiries the following numbers can be used for calling, sms, whatsapp and
telegram
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 or
,AC401 ASSIGNMENT 1 2025
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
, AC401 ASSIGNMENT 1 2025
2𝐷𝑆
Economic Order Quantity (EOQ) =√ 𝐻
Where:
D = Annual demand = 45,000
S = Ordering cost = 100
H = Carrying cost per unit = 1
2×45000×100
EOQ = √ = √9000000 = 3,000 units
1
Answer: EOQ = 3,000 units
1.1.2 The number of orders to be placed annually based on the economic order
quantity
𝐷 45,000
Number of orders = 𝐸𝑂𝑄 = = 15
3,000
1.1.3 The total ordering costs and total carrying costs.
Total ordering cost = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑜𝑟𝑑𝑒𝑟𝑠 × 𝑂𝑟𝑑𝑒𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑜𝑟𝑑𝑒𝑟 = 15 ×
100 = 𝑅1,50015 × 100 = 𝑅1,500
Total carrying cost = Average inventory × Carrying cost per unit
𝐸𝑂𝑄 3,000
Average inventory = = = 1,500 𝑢𝑛𝑖𝑡𝑠
2 2
Total carrying cost = 1,500 × 1 = 𝑅1,500
