1. Aqua Ltd has forecast the yearly demand for its product as 5,000 units. 100 units of material must be used to produce the product. The cost of placing a single order for raw materials is $20, and the cost of holding one unit of material is $0.40 a year.

Refer to the information above. The economic order quantity for raw materials is:

Select one:

A. 2,236units.

B. 7,071 units.

C. 707 units.

D. 71units.

1. Calculate the operating cash cycle in days if all sales are for cash, inventory is turned over 7 times a year and creditors are paid on average 5 times a year.

Select one:

A. +20.9 days.

B. -20.9 days.

C. 125.1 days.

D. 52.1 days.