3.2 Sadida (Pty) Ltd sells different grades of cheese to the general public as well as to other retailers. The company hiredyou as its management accountant two months ago. Recently, you have been tasked with instituting measures toreduce the company's rapidly increasing costs. After some research, you have come to the realization that thecompany does not make use of Economic Order Quantity (EOQ) and you believe that this will be a good place to startyour cost-reduction journey. You have therefore rounded up the following information regarding one of its products:2 650 unitsWeekly demandPurchase price per unitR180Cost of placing an orderR230Insurance10% of the purchase priceR17 per unit2 weeks1 week's demandDirect stockholding costsLead timeSafety inventoryRequired:3.2.1 Calculate the economic order quantity for the company. Note: round off your answer to the nearest whole number.13.2.2 Calculate the total ordering cost for the company. Note: Round off your calculations to the nearest whole number.3.2.3 Calculate the reorder point for the company

Economic order quantity refers to the quantity of material to be recorded at one time. This quantity…

Required: 3.2.1 Calculate the economic order quantity for the company. Note: round off your answer to the nearest whole number. 3.2.2 Calculate the total ordering cost for the company. Note: Round off your calculations to the nearest whole number. 3.2.3 Calculate the reorder point for the company

Required: 3.2.1 Calculate the economic order quantity for the company. Note: round off your answer to the nearest whole number. 3.2.2 Calculate the total ordering cost for the company. Note: Round off your calculations to the nearest whole number. 3.2.3 Calculate the reorder point for the company

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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