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Question 2) 1) Indus machine shop has customers requesting Special Flat screws throughout the year. The owner, Mathews, buys these screws from MSC at a price of $8 per pair. In an effort to improve profitability by selling in greater quantities, the sales rep. for MSC has made the following offer to Indus Machine Shop: If Mathews orders from 1 to 50 pairs at a time, the cost per pair is $8.00. If the order is between 51 to 100 pairs at a time, the cost per pair is $7.85. On orders for more than 100 pairs at a time, the cost per pair is $7.75. The owner estimates annual demand to be 300 pairs of special screws. Holding costs are 25 percent of unit price. The cost to place an order is $5. a) Determine the most cost-effective ordering policy (EOQ) for Indus Machine Shop b) Total Set-up and Holding Cost? c) Total Cost? d) Average Inventory under optimum cobditions. e) Which discount offer from MSC sales rep. will help make right business decision