QUESTION $1(26$ marks$)$ Umbrella Luxe $($Pty$)$ Ltd $($ Umbrella Luxe$)$ is a stylish accessories company founded by Rhianna Fente. The company sells a range of umbrellas perfect for making a fashion statement, rain or shine. You currently assist Rhianna in compiling the management accounts of the business on a monthly basis. As part of the company$$s strategy to maintain an optimal stock level, Rhianna is keen on determining the Economic Order Quantity $($EOQ$),$ which will help her determine the most cost$-$effective quantity of umbrellas to order, minimising inventory costs while preventing stockouts. Umbrella Luxe uses the weighted average inventory valuation method. Rhianna sent you the below stock movement report for the company$$s Ella$-$Ella umbrellas for the month of July $2025.$ Umbrella Luxe $($Pty$)$ Ltd Stock Movement Report Month: July $2025$ Date Transaction Units Unit Price $4$ Received new stock $300$ R$1206$ Sold stock $7507$ Received new stock $250$ R$10515$ Sold stock $13023$ Returned stock from the $7$th of July delivery $50$ R$11431$ Sold stock $60$ Signed$-$off by: Rhianna Fente Date: $31$ July $2025$ ANNEXURE F: FORMATIVE ASSESSMENT $159$ HMAC$230-1-$Jul$-$Dec$2025-$FA$1-$V$3-$PM$-01072025$ Umbrella Luxe had $500$ umbrellas on hand valued at R$118$ per unit on $30$ June $2025.$ Additionally, the company has provided the following information regarding its inventory management: $$ Umbrella Luxe uses the perpetual inventory system. $$ The entity incurs R$120$ to place an order and R$4,50$ for storage$-$related expenses for each item in inventory. $$ Current month demand represents the average monthly demand for the EllaElla umbrellas. REQUIRED: $1\mathrm{.}1.$ Determine the Economic Order Quantity $($EOQ$)$ for Ella$-$Ella Umbrellas. Then, interpret the calculated EOQ for Umbrella Luxe $($Pty$)$ Ltd$.(5$ marks$)1\mathrm{.}2.$ Calculate the closing inventory value of the Ella$-$Ella umbrellas $.(21$ marks$)$