doors Ltd purchases doors in bulk and resells them to the public. Last year the comapny had sales of R1 000 000. Each door is sold at R50. The company rents a shop that comes with a small warehouse at a locall mall. The financial manager of the company has estimated that it costs the company R5 per year to keep each door in storage based on the amount of space they have and rental costs. When the company places an order, it takes 11 days for their supplier to deliver new stock and the owner of the bussiness wishes to always keep atleast 100 doors in stock. The financial manager has also estimated that it costs the company R1 000 for each order they place
a) Calculate the economic order quantity for Doors Ltd
b)calculate the reorder point of the company
c) A supplier offers he following credit terms:3/14 net 60. Calculate the cost of giving up the cash discount
d) an organisation has a cash conversion cycle (CCC) of 45 days and an operating cycle of 75 days. what was the company’s average payment period.