An Investment Adviser uses a third-party money manager to manage the accounts of his more sophisticated clients. These customers are older and are conservative in their objective, seeking current income and moderate growth. The third-party money manager has not achieved acceptable investment returns this year and changes its investment strategy the following year to aggressively trade speculative stocks, in an effort to improve performance. During the first quarter, using the new strategy, the customers' portfolios drop 15% in value and many of them write complaint letters to the Adviser. Which statement is TRUE

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.