A retailer named ABC Inc. faces constant customer demand for a SKU. The business's setting satisfies all assumptions for the EOQ model. Please answer the following questions.

1. ABC correctly calculates the EOQ to be 50 units and set the order quantity Q to be EOQ=50. The corresponding annual total (sum of) costs for ordering and holding cycle inventory is known to be $ 1,500. Please answer the following question:

ABC's annual total costs for holding cycle inventory = $ ____. (Please select the closest number.)

Group of answer choices:

$1500

$1200

$750

$600

$500

$300

$30

$24

2.(Answer this question independent of the preceding question.)

ABC's inventory manager currently sets the order quantity Q=150. Under this policy, the annual cycle inventory holding costs is $2,250 and the annual ordering costs is $1,230. You are hired to optimize the cycle inventory by adjusting the order quantity Q. Let's assume that you are not authorized to change cost parameters (e.g., D, H and S). Which of following is the correct recommendation?

Group of answer choices:

The inventory manager should increase the order quantity Q to be greater than 150.

The inventory manager should decrease the order quantity Q to be less than 150.

The inventory manager should make no change to Q.

There isn't enough information for you to make recommendation.