Jordan Reed, the $\frac{C}{O}O,$ has requested his team to explore the feasibility of utilizing air freight for the transportation of the cards. Alex Monroe, the Distribution Director, has compiled the following data: $(35$ points$)$

Annual demand $($A$)$: $6,000$ cases of cards

Case value $($price$)$: $$96$ each

Inventory carrying cost $($annual$)$: $30\%$

Cost per order to replenish inventory $($Cp$)$: $$75$

Annual In$-$transit inventory carrying costs for motor carrier $($flat rate: does not depends on the order weight$/$amount$)$: $$1112\mathrm{.}2$

Annual In$-$transit inventory carrying costs for air carrier $($flat rate: does not depends on the order weight$/$amount$)$: $$278\mathrm{.}5$

Motor carrier rate: $$1\mathrm{.}20$ per cwt$.(100$ lbs$.)$

Air carrier rate: $$2\mathrm{.}50$ per cwt$.(100$ lbs$.)$

Unit weight: $50lbs.$ per case

What is the economic order quantity for Collector's Diamond in units? In pounds? $(10$ points$)($Note: $C_2($cost to hole one unit inventory for a year$)=$ Case value $*$ Inventory carrying cost $($annual$))$

What is the total cost $($not considering transportation$-$related costs$)$ of the EOQ? $(10$ points$)$

What is the total cost for using motor carrier transportation? $(5$ points$)$

$($Note: add the total cost found in $(2)$ with Annual in$-$transit carrying costs for motor carrier and Total annual motor carrier rate$)$

What is the total cost for using air carrier transportation? $(5$ points$)$

$($Note: add the total cost found in $(2)$ with Annual in$-$transit carrying costs for air carrier and Total annual air carrier rate$)$

Which altemative should Collector's Diamond use? $(5$ points$)$