Question: 1.1 REQUIRED Use the information given below to calculate the number of orders that should be placed during 2021 using the most advantageous quantity to

1.1

REQUIRED

Use the information given below to calculate the number of orders that should be placed during 2021 using the most advantageous quantity to order each time. (5Marks)

INFORMATION

Govan Limited expects to purchase 40 000 components during 2021 with a purchase price of R20 per unit, an ordering cost of R2 per order and a carrying cost of 20 percent of the unit purchase price.

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