Problem 7-9 Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand = 28 units per day Average lead time = 35 days Item unit cost = $55 for orders of less than 250 units Item unit cost = $53 for orders of 250 units or more Ordering cost = $30 Inventory carrying cost = 20% The business year is 250 days Assume there is no uncertainty at all about the demand or the lead time. a. Calculate EOQ if unit cost is $55 and $53. (Note: These EOQs do not need to be feasible in their price range. (Round up your answers to the next whole number.) Answer is complete and correct. EOQ 195 units Unit cost at $55 Unit costat $53 199 units b. Calculate annual ordering costs for each alternative? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Annual Ordering Cost 1,071,43 Unit cost at $55 Unit cost at $53 1,050.00 c. Calculate annual inventory carrying costs for each alternative? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Annual Inventory Carrying Cost 1,078.00 Unit cost at $55 Unit cost at $53 1,060.00 d. Calculate annual product costs for each alternative? Answer is complete and correct. Annual Product Cost 385,000 371.000 Unit cost at $55 Unit cost at $53 e. What will be the total costs for each alternative? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Total Cost 387,149.43 Unit cost at $55 Unit cost at $53 373.110.00 f. Based on your analysis, how many chairs should they order at a time? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Order Quantity 200 chairs 9. How much the firm can save annually by using the order quantity in Part f. instead of the first EOQ shown in Part a? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Amount saved 14,039.43