Question: please solve question 2 based on info in problem 1 PROBLEM 1 Pam runs a mail-order business for gym equipment Annual demand for the TricoFlex

please solve question 2 based on info in problem 1

PROBLEM 1 Pam runs a mail-order business for gym equipment Annual demand for the TricoFlex 17400 units. The annual holding cost per unit is $ 3,90 and the cost to place an order is $ 64 Pam purchases TricoFlexers at a unit cost of $ 64,00 per unit. Pam can invest her cash at 8% per year (this is opportunity cost). What is the economic order quantity (EOQ? ($ PROBLEM 2 The manufacturer of TricoFlexers has agreed to offer Pam a price discount o $ 6.40 per unit 57,60 rather than $ 64.00 ) if she buys 1100 units. Assuming annual demand is still 17400 units. how many units should Pam order at a time? EOQ (see PROBLEM 1), 1100 units? Take into account, that all other parameters (holding cost per unit order placement cost. interest forgone (opportunity cost)) remain the same as in PROBLEM 1

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