Problems for Section 11.3: Continuous Review Systems 3. Pam runs a mail-order business for gym equipment. An- nual demand for TricoFlexers is 16,000. The annual hold- ing cost per unit is $2.50, and the cost to place an order is $50. a. (*) What is the economic order quantity? b. (**) Suppose demand for TricoFlexers doubles, to 32,000. Does the EOQ also double? Explain what happens. c. (**) The manufacturer of TricoFlexers has agreed to of- fer Pam a price discount of $5 per unit ($45 rather than $50) if she buys 1,500. Assuming that annual demand is still 16,000, how many units should Pam order at a time? Problems for Section 11.3: Continuous Review Systems 3. Pam runs a mail-order business for gym equipment. An- nual demand for TricoFlexers is 16,000. The annual hold- ing cost per unit is $2.50, and the cost to place an order is $50. a. (*) What is the economic order quantity? b. (**) Suppose demand for TricoFlexers doubles, to 32,000. Does the EOQ also double? Explain what happens. c. (**) The manufacturer of TricoFlexers has agreed to of- fer Pam a price discount of $5 per unit ($45 rather than $50) if she buys 1,500. Assuming that annual demand is still 16,000, how many units should Pam order at a time