5. Using the economic order quantity model, what is the total annual holding and ordering cost given an annual demand of 36,000 units, a cost per order of $80 and a holding cost per unit per year (h) of $4?

6. Sarahs Silk Screening sells souvenir shirts. Sarah is trying to decide how many to produce for an upcoming event, which will be only held once at the Business school. The University will allow her to sell the shirts only on one day, the day of the event. Sarah will sell the T-shirts for $20 each. When the event day is over, she will be allowed to sell the remaining stock to the Bookstore for $4 each. It costs Sarah $8 to make the specialty shirt. She estimates the demand to be between 315 and 775, with equal probability. How many shirts should she make?