1. Master Company wants $600,000 of product on January 1 of 2020 and needs to fund through the supplier. They will pay the discounted loan back on August 31 of 2020 (243 days) with $32,000 of interest. The effective rate on this loan is: A. 8.58% B. 5.33% C. 8.12% D. 12.25% 2. The economic order quantity: A. Determines the lowest ordering costs B. Determines the amount to order which will give you the lowest total inventory costs. C. Determines the ideal inventory to meet your customer needs. D. Determines the amount to order which will give you the lowest carrying costs. 3. Massa Machine Tool expects sales of $3,450,000 with a sales price per unit of $30. The firm estimates an ordering cost of $200 per order, with an inventory carrying cost of $4.00 per unit. What is the optimum order size? A. 18,574 units B. 115,000 units C. 3,391 units D. 5,831 units