Question 2 (25 marks) Mega Value's main product is the sugar lollipop. Each item is sold for $800 with a prot margin of 25% each. The company orders 450,000 units quarterly and management wants to know the optimal order quantity. To place each order, the entity designates a single employee who is paid at a rate of $50 per hour which takes a maximum of ve hours. The cost of holding each unit of inventory is $4. Management was advised by the supplier that a 2.5% discount will be given if the company doubles its current lot size. On the other hand, a 5% discount will be granted for two and a half times the current lot size and a 10% discount if the order size is four times the amount. Required: a) Calculate the EOQ based on the formula. (3 marks) b) Calculate the total cost based on the EOQ. ' (4 marks) c) Calculate the total cost for each individual alternate order quantity including the current policy. (16 marks) d) Which order quantity is considered the optimal order quantity and why? (2 marks)