Source: CIMA $($adapted$)$

$3\mathrm{.}2$ Blowave Ltd sells Turbo$-$blow brand hairdryers to salons. The annual demand is approximately $1200$ hairdryers. The supplier pays R$28$ for each hairdryer and estimates that the annual holding cost is $30\%$ of the hairdryer's value. It costs approximately R$20$ to place an order $($managerial and clerical costs$).$ The supplier currently orders $100$ hairdryers per month in one single order.

Cost and Management Accounting

$87$

Required:

$($a$)$ Determine the ordering, holding and total inventory costs for the current order quantity.

$($b$)$ Determine the EOQ.

$($c$)$ How many orders will be placed per year using the EOQ?