Question 3 Plot Co sells both Product P and Product Q, with sales of both products occurring evenly throughou t the year. Product P The annual demand for Product Pis 300,000 units and an order for new inventory is placed each m onth. Each order costs $267 to place. The cost of holding Product Pin inventory is 10 cents per unit per year. Buffer inventory equal to 40% of one month's sales is maintained. Product Q The annual demand for Product Q is 456,000 units per year and Plot Co buys in this product at $1 p er unit on 60 days credit. The supplier has offered an early settlement discount of 1% for settlement of invoices within 30 days. Other information Plot Co finances working capital with short-term finance costing 5% per year. Assume that there are 365 days in each year. Required: Identify the objectives of working capital management and discuss the central role of working capit al management in financial management. (10 marks) Question 3 Plot Co sells both Product P and Product Q, with sales of both products occurring evenly throughou t the year. Product P The annual demand for Product Pis 300,000 units and an order for new inventory is placed each m onth. Each order costs $267 to place. The cost of holding Product Pin inventory is 10 cents per unit per year. Buffer inventory equal to 40% of one month's sales is maintained. Product Q The annual demand for Product Q is 456,000 units per year and Plot Co buys in this product at $1 p er unit on 60 days credit. The supplier has offered an early settlement discount of 1% for settlement of invoices within 30 days. Other information Plot Co finances working capital with short-term finance costing 5% per year. Assume that there are 365 days in each year. Required: Identify the objectives of working capital management and discuss the central role of working capit al management in financial management. (10 marks)