REQUIRED Calculate the following from the information provided below:

4.1.1 Economic Order Quantity (5 marks)

4.1.2 Re-order point (3 marks)

INFORMATION The following details have been supplied by Embury Limited for one of its products:

Annual sales 36 000 units

Carrying costs as a percentage of the unit purchase price 10%

Purchase price per unit R20

Cost of placing an order R10

Period between when an order is placed and when that order is delivered 12 days

Number of days in the year that the company operates 240