Drink-sum-more Pty (Ltd) is a privately-owned business that markets and distributes a range of healthy...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Drink-sum-more Pty (Ltd) is a privately-owned business that markets and distributes a range of healthy soft drinks made from natural ingredients. They purchase their 550ml bottles from a local supplier. Drink-sum-more requires 243 bottles to meet monthly demand. The cost of placing an order is R50. The inventory carrying cost is estimated to be R25 per unit per annum.
REQUIRED:
a) Calculate the economic order quantity. (4)
b) Calculate the number of orders to meet the annual demand. (2)
c) Calculate the annual ordering cost. (2)
d) Calculate the annual carrying cost. (2)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
