Question 16 (20 points) Stocky Ltd purchases raw materials from a supplier using the Economic Order Quantity methodology having estimated the cost of Ordering as 120 per order and the annual holding cost for a unit of materials as 3 pa per unit. The cost of financing average stock is currently 6,000pa, and annual demand is for 8,000 units. Each unit costs 125 to purchase, and the supplier offers credit terms that require each order to be paid on the date that the next order is made The supplier has offered that if the order size is set at 1200 units, they will continue to offer credit terms for the duration of the order cycle. Given working capital costs Stocky Ltd 5% pa to finance, what would be the cost or saving of moving to the 1200 unit order size, assuming minimum stock levels are maintained and instantaneous delivery of orders? [20 marks - please upload an image of your working with your name, surname and student ID written at the top of the page]