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1.3 The monthly sales of a product sold by Tovo Limited are 150 000 units. The purchase price is R16 per unit. The carrying cost

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1.3 The monthly sales of a product sold by Tovo Limited are 150 000 units. The purchase price is R16 per unit. The carrying cost of inventory amounts to 25% of the purchase price. The ordering cost is R12 per order. Calculate: 1.3.1 Annual economic order quantity (EOQ) 1.3.2 The number of orders that need to be placed annually based on the EOQ. 1.3.3 The total ordering costs and carrying costs. (4) (2) (4)

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