(a) Explain 'Cost centre' and 'Cost unit. (b) A company manufactures a product from a raw material, which is purchased at K54 per kg. The company incurs a handling cost of K350 plus freight of K400 per order. The incremental carrying cost of inventory of raw material is K0.50 per kg per month. In addition, the cost of working capital finance on the investment in inventory of raw material is K8 per kg per annum. The annual production of the product is 94,500 units and 2 units are obtained from one kg of raw material Required (i) Calculate the economic order quantity of raw materials (ii) Advise, how frequently should orders for procurement be placed (iii) If the company proposes to rationalize placement of orders on quarterly basis, what percentage of discount in the price of raw materials should be negotiated? (5 marks) (c) A large consignment of materials of various types of makes was purchased for K40,000. Later on these were sorted into the following categories (4 marks) . (4 marks) Category A 6,000 units Market price K4 per unit Category B 4,000 units Market price K3 per unit Category C 7,000 units Market price K2 per unit You are required to calculate the purchase price for each of the materials presuming that percentage of profit in each case is the same (12 marks) Total marks) (25