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:

$\backslash$table$[[$EOQ is$,23$ cases at a total cost of$,$$$,364]]$

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

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

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

A $40\%$ increase in demand changes the EOQ to $27$ cases at a total cost of

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

A $20\%$ increase in carrying charges changes the EOQ to

$21$

cases at a total cost of