RST Limited has received an offer of quantity discount on its order of materials as under: The annual requirement for the material is 500 tonnes. The ordering cost per order is Rs 12,500 and the stock...

RST Limited has received an offer of quantity discount on its order of materials as under:

The annual requirement for the material is 500 tonnes. The ordering cost per order is Rs 12,500 and the stock holding cost is estimated at 25 per cent of the material cost per annum. Required: (i) Compute the most economical purchase level. (ii) Compute EOQ if there are no quantity discounts and the price per tonne is Rs 10,500.