Question 1: Using the EOQ methods outlined in the text, how many kegs of nails should Ranaut order at one time?

Question 2: Assume all conditions in Question 1 hold, except that Ranauts supplier now offers a quantity discount in the form of absorbing all or part of Kumars order-processing costs. For orders of 1000 or more kegs of nails, the supplier will absorb all the order-processing costs; for orders between 449 and 999 kegs, the supplier will absorb half. What is Ranauts new EOQ? (It might be useful to lay out all costs in tabular form for this and later questions.)

Orders per Year	Order Size	Processing Costs ($)	Warehousing Costs ($)	Sum of Processing and Warehousing Costs ($)