Question: 5.1 REQUIRED Use the information provided below to determine the following: 5.1.1 EOQ if discounts are not available (2 marks) 5.1.2 The quantity that should

5.1 REQUIRED Use the information provided below to determine the following: 5.1.1 EOQ if discounts are not available (2 marks) 5.1.2 The quantity that should be ordered considering the discounts that are available (10 marks) INFORMATION The following information was provided by AB Suppliers for a product that it sells: Annual demand 200 000 units Unit cost R50 Fixed cost per order R100 Annual carrying cost per unit 20% of unit cost The supplier offered a discount scheme as follows: Discount Order size 0% 0 3 199 4% 3 200 7 999 5% 8 000 19 999 6% 20 000+ 5.2 REQUIRED Study the information provided below and calculate the following: 5.2.1 Gross profit for the year ended 31 December 2022 using the weighted average cost method (with the average price per unit expressed to the nearest cent). Your answer must include the value of closing inventory disclosed in the format of the statement of comprehensive income. (6 marks) 5.2.2 Value of closing inventory

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!