Calculate annual stockholding costs and impact of quantity discounts. BB manufactures a range of electronic products. The supplier of component Y has informed BB that it will offer a quantity discount of 1.0 per cent if BB places an order of 10000 components or more at any one time. Details of component Y are as follows: Cost per component before discount Annual purchases Ordering costs Holding costs Required: $2.00 150000 components $360 per order $3.00 per component per annum (i) Calculate the total annual cost of holding and ordering inventory of component Y using the economic order quantity and ignoring the quantity discount. (2 marks) (ii) Calculate whether there is a financial benefit to BB from increasing the order size to 10000 components in order to quality for the 1.0 per cent quantity discount. (3 marks) CIMA P1 Performance Operations