Problem $14-4($LO $14-4,14-7)$ The Always Fresh Grocery...

The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics:

Sales $=8$ cases per week

Ordering cost $=$ $$10$ per order

Carrying charge $=20$ percent per year

Item cost $=$ $$80$ per case

Given the above information, the EOQ and total cost are:

What is the effect on EOQ and total cost of the following types of changes? $($Round EOQs up to the nearest integer and total cost up to the next dollar.$)$

$($Note: answer each part independently.$)$

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a$.$ A $40$ percent increase in demand.

b$.$ A $20$ percent increase in carrying charge.