Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 40% of the $9 unit cost and that annual demand is about 235 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal?

a) For what value of ordering cost would its action be optimal?

Its action would be optimal given an ordering cost of $__ per order (round your response to two decimal places).

b) If the true ordering cost turns out to be much less than your answer to part (a), what is the impact on the firm's ordering policy?

Henty Crouch's law ofice has waditionally ordered ink retits 55 ints at a tme The Srm estmates that carying cost is 40% of the 59 unt cost and that annual demand is atout 235 unts per yeat. The assumpeons o the basic foQ mooel ale thought to afply. For what value of ordering cost would its acton be optinat? a) For what value of ordering cost would its octon be ostmar? Its actios would be obtemal given an orderng coss of: per arder fround roor ressonse to two dicimed pikces) A. The oder quantity rrouid net be changsd B. The odder quantidy shouid be increased C. The order quantity should be dicreesed