Henry Crouch's law office has traditionally ordered ink refills units at a time. The firm estimates that carrying cost is % of the $ unit cost and that annual demand is about 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 $ nothing per order (round your response to two decimal places).

b) If the true ordering cost turns out to be much than your answer to part (a), what is the impact on the firm's ordering policy? A. The order quantity should not be changed. B. The order quantity should be____ . C. The order quantity should be ____ .