Question: Please solve a) and b). Thank you :) Problem 1 Canada Computers purchases integrated chips at $330/ chip. The holding cost is assessed at 12%

Please solve a) and b). Thank you :)

Problem 1 Canada Computers purchases integrated chips at $330/ chip. The holding cost is assessed at 12% on the dollar, the ordering cost is $110 order and sales are steady at 425/ month. The company's supplier, AMD decides to offer price concessions in order to attract larger orders as shown below. 0124units,cost=$330/chip125224units,cost=$300/chip225ormore,cost=$275/chip (a) Determine how many chips the company should order each time it places an order and total cost? ( 8 marks) (b) How many orders will be placed each year and what is the time (days) between each order? ( 2 marks)

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