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Question 1: A Ltd is a customised pencil manufacturer and is projecting sales of R200 000 for 20XX. The company's supplier charges the company R100...


Question 1:

A Ltd is a customised pencil manufacturer and is projecting sales of R200 000 for 20XX. The company's supplier charges the company R100 per order of pencils. The selling price per unit for the firm is R10, while the purchase price per unit is R5. The carrying cost of the inventory is 10% of its value.

Calculate the economic order quantity f Ltd.


A. 8 944 units

B. 2 000 units

C. 2 828 units

D. 6 325 unit


Question 2:


Determine the growth rate of the following stream of cash flows:

Year Cash flow(R)

1 250

2 360

3 420

4 580

5 630


A. 44%

B. 20%

C. 63%

D. 26%


Question 3:


B Ltd. extends credit terms of 40 days to its customers. The company's credit collection would be considered poor if its average collection period were ... days.

A. 32

B. 37

C. 40

D. 39

Top Answer

Answer C. 2... View the full answer

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