$1\mathrm{.}2$

REQUIRED

Use the information provided below to calculate the economic order quantity.

$(4$ marks$)$

INFORMATION

The average monthly usage of an item that costs R$2$ each and sells for R$4\mathrm{.}50$ each is $600$ units. The

holding cost is $10\%$ of the cost of the item. The cost to place an order is R$20.$