QUESTION $2$

$2\mathrm{.}1$

$(20$ MARKS$)$

REQUIRED

Use the information provided below to calculate the economic order quantity $($EOQ$).$

$(4$ marks$)$

INFORMATION

Munster Limited anticipates sales of $120000$ units for $2025,$ a purchase price of R$5$ per unit, ordering cost of R$24$ per order and a carrying cost of $20\%$ of the purchase price.