Question: 1. (Ch. 12, EOQ) A Pizza store orders flour to make pizzas. The Pizza store incurs a fixed order cost of $1 per order and

1. (Ch. 12, EOQ) A Pizza store orders flour to
1. (Ch. 12, EOQ) A Pizza store orders flour to make pizzas. The Pizza store incurs a fixed order cost of $1 per order and 5% annual holding cost. It purchases a bag of flour for $20 and it needs 450 bags per year. It is offered a 5% discount if it purchases 200 bags or more. How much does it save each year (including purchasing, ordering, and holding costs) if it purchases enough bags to get the discount? (20 Points)

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