1.2
REQUIRED
Use the information provided below to calculate the economic order quantity.
INFORMATION
(4 marks)
The average monthly usage of an item that costs R2 each and sells for R4.50 each is 600 units. The
holding cost is 10% of the cost of the item. The cost to place an order is R20.
1.3
REQUIRED
Calculate the earnings of Amanda for the day using the straight piecework incentive scheme.
INFORMATION
(4 marks)
The standard time to produce a product is 10 minutes. Amanda is paid R120 per hour and the normal
working day is 8 hours. If Amanda produces more than her quota, she receives 1.5 times the hourly
rate on the additional output. Amanda produced 54 units for the day.
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