Question: 13. (See problem 12 for basic data.) In the second year, Howe Corporation finds it can reduce ordering costs to $ 1 per order but

13. (See problem 12 for basic data.) In the second year, Howe Corporation finds it can reduce ordering costs to $ 1 per order but that carrying costs will stay the same at $ 1.008 per unit.

a. Recompute

a, b,

c, and d in problem 12 for the second year.

b. Now compare years one and two and explain what happened.

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