REQUIRED

Use the information given below to calculate the quantity that will minimize the total ordering and

storage costs during 2024. (5 marks)

INFORMATION

Kip Enterprises intends purchasing 2 000 units of product Yogo per week during 2024 at R52 per unit. The following additional costs are incurred:

\begin{tabular}{|l|l|} \hline Ordering cost & R25 per order \\ \hline Stockholding cost & 10% of the unit purchase price \\ \hline \end{tabular}