Question 2 Compact Ltd is a retailer of bottled Fruit drinks. The company has an annual demand of 19 000 containers. The container cost 10 each. The ordering costs and the cost of carriage inwards are $150 per order. The annual cost of holding one container in inventory is estimated to be $2.00 Required: A. Calculate the economic order quantity (EOQ) from the above information. (2 marks) B. The following data was obtained from a company's records: Minimum lead time 12 days Average lead time 16 days Maximum lead time 24 days Maximum usage Minimum usage Re-order quantity 1600 units per day 1400 units per day 20 000 units Calculate: C. i. Average usage ii. Reorder level iii. Minimum Control Level (2 marks) (2 marks) (2 marks) (2 marks) iv. Maximum Control Level Compact Ltd. is a trader in bottled Drinks and had the following transactions for the month of March 2020. Purchases (Bought) Sales(sold) Mar 08 80 units @ $200 Mar 11 Mar 13 60 units @ 230 Mar 15 70 units @ $340 55 units @ $290 Mar 20 75 units @ $250 Required: Calculate the closing stock using FIFO and AVCO for Compact Ltd. (10 marks) (Total 20 marks)