Boing-Boing Ltd has the following figures regarding its inventory:

Cost price per unitR50 per unit

Storage cost per unitR5 per unit

Annual usage100 000 units

Normal delivery time2.5 weeks

Insurance cost per unitR5 per unit

Ordering cost for 2ordersR80

Safetyinventory5 000 units

Assume 50 normal working weeks per year, and four weeks per month.

Required

Calculate:

(a)EOQ/7/

(b)Number of orders peryear/7/

(c)Ordering cost peryear/6/