Answer to Question #348171 in Other for noxolo

Question

3 Hair Extreme buys a standard type of hair dye in 50ml containers at a standard price of R100 per container. Hair Extreme uses 2 500 of these containers each year. The cost of placing and receiving a typical order is R120. The annual carrying cost is estimated to be R2 per container. Q.3.3.1 Hair Extreme currently orders 250 containers per order. Calculate the number of orders Hair Extreme currently places per year. (2) Q.3.3.2 Calculate the economic order quantity for Hair Extreme for the hair dye.