A company plans to consume 700 pieces annually of a particular component. Past records indicate that its purchasing department spent $12,500 for placing 15,000 purchase orders. The average inventory...

A company plans to consume 700 pieces annually of a particular component. Past records indicate that its purchasing department spent $12,500 for placing 15,000 purchase orders. The average inventory was valued at $50,000 and the total storage cost was $7,500, which included wages, rent, taxes, insurance etc. related to store department. The company borrows capital at 10 per cent a year. If the cost of the component is Rs. 12 and lot size is 10, determine the;

1. Purchase price/year


2. Purchase expenses/year


3. Storage expenses/year


4. Capital cost /year


5. Total cost/year