Henry crouch's law office has traditionally ordered ink refills 70 units at a time. the firm estimates that carrying cost is 40% of the $11 unit cost and that annual demand is about 245 units per year. the assumptions of the basic eoq model are thought to apply. for what value of ordering cost would its action be optimal? a) for what value of ordering cost would its action be optimal? its action would be optimal given an ordering cost of $ nothing per order (round your response to two decimal places). b) if the true ordering cost turns out to be much less than your answer to part (a), what is the impact on the firm's ordering policy?

a. 49.50 units

b. The order quantity should not be changed

Explanation:

a. The computation of the ordering cost is shown below:

Economic order quantity =

where,

Carrying cost = $11 × 40% = $4.4

And, the other items values would remain the same

Now put these values to the above formula  

So, the units would equal to

70 =

= 49.50 units

b. Since we see that the ordering cost is less than the economic order quantity, the order quantity should not be changed as it leads to increase in the total inventory cost

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.