Answer the following questions:

1. A company purchases wood for use in its products. The firm uses 740 pounds of wood per week and purchases wood for $2 per pound from a supplier. The cost to hold one pound of wood in inventory for one year is $0.4. Each time the firm orders wood from the supplier, the firm must pay an order processing charge of $71.

   What is the economic order quantity (in pounds)?

Note: Assume there are 52 weeks in a year and round your answer to the nearest integer value.

2. A convenience store purchases magazines for $1.25 and sells them for $5. At the end of the month, each unsold magazine can be returned to the publisher for a $0.50 refund.

What is the overage cost for a magazine? 

Note: Round your answer to 2 decimal places.

3. (A store owner has determined that the overage cost for a product is $70 and the underage cost is $65.

 

What is the store owner's critical ratio?

 

Round your answer to 3 decimal places.