Question: This question is on Chegg already, but the answer is wrong & does not fully address the question. Please see below for both parts. Problem

This question is on Chegg already, but the answer is wrong & does not fully address the question.

Please see below for both parts.

Problem 3. A company has overestimated its annual demand for an item by 50% and underestimated its ordering cost by 20%.

a) By what percentage (of the economic order quantity) will the order quantity be too large? Express your answer as a percent with 2 decimal places.

Order Quantity Error Fraction = ____ %

b) By what percentage (of the total relevant costs) will total relevant costs be too high? Express your answer as a percent with 2 decimal places.

TRC error fraction = ___%

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