$2)$ A retail store sells $24,000$ units of a product annually. The cost to place an order is $500,$ and the holding cost per unit per year is $20.$ The lead time to receive an order is $6$ days. The store operates $300$ days a year and wants to avoid stockouts.

a$)$ Calculate the Economic Order Quantity $($EOQ$)$ using the EOQ formula.

b$)$ Calculate the Reorder Point $($ROP$)$ to ensure timely replenishment.

Formulas:

EOQ $=(2$DS $/$ H$)$

ROP $=$ d $$ L

Where:

D $=$ Annual demand

S $=$ Ordering cost per order

H $=$ Holding cost per unit per year

d $=$ Daily demand $=$ D $/$ number of operating days

L $=$ Lead time in days

Final Answer should include:

EOQ $($rounded to nearest whole number$)$

ROP $($rounded to nearest whole number$)$

A factory manufactures two products: A and B$.$

Product A: Selling Price $300,$ Variable Cost $180$

Product B: Selling Price $500,$ Variable Cost $300$

Fixed Costs: $6,00,000$ per year

Sales Mix: $3$ units of A for every $2$ units of B

a$)$ Calculate the weighted average contribution margin $($CM$)$ per unit.

b$)$ Determine the break$-$even point in total units, and find how many units of each product the company must sell to break even.

Formulas:

CM per unit $=$ Selling Price $$ Variable Cost

Weighted CM $=($CM$\_$A $$ proportion$\_$A$)+($CM$\_$B $$ proportion$\_$B$)$

Break$-$even units $=$ Fixed Costs $/$ Weighted CM

Product A units $=$ Break$-$even units $(3/5)$

Product B units $=$ Break$-$even units $(2/5)$

Final Answer should include:

Break$-$even total units $($rounded$)$

Units of Product A

Units of Product B