ADR Ltd purchases a particular item in lots of 1 250 units. Its annual usage of this item is 6 250 units. Ordering costs are R200 per order and the carrying (holding) costs are R10 per unit per year. Calculate each of the following:

1.1 Total cost

1.2 Cost of holding stock

1.3 Average inventory held

1.4 Cost of orders (Order costs)

1.5 Number of orders 1.6 The Economic Order Quantity (EOQ) in units