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

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

a. Recompute (a), (b), (c), and

(d) in the previous problem for the second year.

b. Now compare years 1 and 2 and explain what has happened.

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