Question: Question 2 (10 points): Bill Green, general manager for Poolco. a company that provides home pool maintenance services in LA area, is responsible for developing

Question 2 (10 points): Bill Green, general

Question 2 (10 points): Bill Green, general manager for Poolco. a company that provides home pool maintenance services in LA area, is responsible for developing inventory policy regarding all items that the company stocks. One item that falls under his control is a clarifying agent that is added to pool water to improve its clarity. This item costs $5 per gallon. Variable costs of storing it in inventory amount to 25% of unit cost per year. Paperwork and shipping costs for placing an order are $10 per order. Each year the company uses an average of 500 gallons, a rate that has not changed in the past. How many gallons should be ordered each time to minimize total annual costs

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