Question: Problem 1 2 - 5 ( Algo ) Garden Variety Flower Shop uses 5 7 0 clay pots a month. The pots are purchased at

Problem 12-5(Algo)
Garden Variety Flower Shop uses 570 clay pots a month. The pots are purchased at $2.90 each. Annual carrying costs per pot are
estimated to be 10 percent of cost, and ordering costs are $10 per order. The manager has been using an order size of 2,000 flower
pots.
a. What additional annual cost is the shop incurring by staying with this order size?
Note: Round your optimal order quantity to the nearest whole number. Round all other intermediate calculations and your final
answer to 2 decimal places.
b. Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 2,000)?
Note: Use the rounded order quantity from Part a. Round your final answer to the nearest whole percent.
 Problem 12-5(Algo) Garden Variety Flower Shop uses 570 clay pots a

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