STOCK NUMBER	QUANTITY	VALUE (RAND)	COUNTING POLICY	CLASS
QT422	35	150 500	Every 5 days	A
TL220	500	125 000	Every 5 days	A
MD234	10 000	55 000	Every 10 days	B
PQ210	3000	45 000	Every 10 days	B
ZH750	12 000	35 000	Every 10 days	B
SS785	120 420	750	Every 50 days	C
LZ456	25 750	500	Every 50 days	C
	171705	411 750

Required: 2.1.1 Using the ABC Stock Analysis Technique classify the stock listed in the table above. (5) 2.1.2 Determine how many stock items must be counted daily. (5) 2.2 A restaurant uses 120 000 take-away boxes per year. Carrying costs are 20 cents per box & ordering costs are R56.00. The following price schedule applies:

No. of boxes Price per Box (Rs) 1000 1999 1.25 2000 4999 1.20 5000 9999 1.15 10000 or more 0.80 2.2.1 Calculate the total cost of take-away boxes. (5) 2.2.2 Apply the discounted values and recommend which option you would choose. (10