Pixie Ltd produces 1 kg bags of dried fruit. Each bag contains 500 grams of dried peaches.

Fantastic news! We've Found the answer you've been seeking!

Question:

Pixie Ltd produces 1 kg bags of dried fruit. Each bag contains 500 grams of dried peaches. On a daily basis about 1 500 to 3 000 dried fruit bags are produced. The dried peaches are ordered from a farmer at an order cost of R200 per order and takes about 7 to 13 days to be delivered. Carrying one kilogram of dried peaches per annum cost R20. The peaches are purchased at a cost of R150 per kilogram. Pixie Ltd operates for 360 days per year. Required Calculate the following:

2.1 Economic order quantity

2.2 Total order cost for the year

2.3 Total storage cost for the year

2.4 Total cost of material used in production

2.5 Re-order level

2.6 Maximum inventory level

Question 3

Pit Ltd is a peach factory that buys peaches from local farmers. The peaches are sorted by labourers and goes through a mechanised process of cleaning and peeling. Afterwards the peaches are pitted and canned in a syrup. Maggie sorts peaches and receives R0.10 per peach sorted. The average peaches to be sorted are 500 peaches per hour. The normal working hours per day for Maggie is from 08:00 till 16:00 Monday to Friday. Maggie sorted 22 000 peaches by the end of the week. If the amount of peaches Maggie sorts is above standard, an additional bonus of 95% of the normal rate per unit will be paid.

Jack is the supervisor in the factory and receives an annual salary of R360 000. He is entitled to a housing allowance of R500 per week. Jack contributes 10% of his basic salary to his pension fund and the employer contributes 5% of the basic salary to Jack's pension fund. Jack belongs to a union and pays 300 per month. The pay-as-you-earn rate for Jack is 28% of taxable income. Both Jack and the employer each contribute 1% of gross remuneration to the Unemployment Insurance Fund. Jack also belongs to a medical aid scheme and contributes R1 500 per month. Simon operates the cleaning and peeling machines.

Simon gets paid R0.05 per peach going through the process. He receives a guaranteed time rate if his piecework earnings are less than the time rate. His guaranteed time rate is 40 hours at R45 per hour. By the end of the week 38 500 peaches went through the process of the machine Simon operates. Assume there are 4 weeks in the month.

Required

3.1 Calculate Maggie's gross wage for the week.

3.2 Calculate Jack's net remuneration for the month.

3.3 Calculate Simon's basic wage for the week.