Problem 2. The Romney Company is a restaurant supplier which sells several products to various restaurants in the area. One of the products is a special meat cutter with a disposable blade. The blade is $3.00 per unit. The annual demand for the blade is 24,000 . The ordering cost is $1.20 and the carning cost is $0.20. 1) Find EOQ for this situation. Using two digits after the decimal point in computation, show all the work that you have reached the EOQ in units. 2) Compute the ordering cost using [(D/Q)0] 3) Compute the carrying cost using [Q/2)C] 4) Compare the two answers from 2) and 3). Are they equal or very close? Yes or No (Circle one). 5) If the answers are not the same or very close, you need to rework. Two kinds of costs are considered here: Ordering cost per order (O) and Carrying cost per unit(C) all of which are based on an anual basis. Annual Ordering cost=(D/Q)OD/Q testifies how many times it should be ordered. Annual Carrying cost=(Q/2)CQ/2 testifies to what will be the average quantity it must carry. Where (D/Q)O=(Q/2)C EOQ= square root of 2DO/C where D is annual demand or sales a business can make for a particular product or brand, O is ordering cost per order for the item, and C is carrying cost per unit. Remember it is a square root