$2.$ Matthew Liotine$$s Dream Store sells beds and assorted supplies. His best$-$selling bed has an annual demand of $400$ units. Ordering cost is $$40$; holding cost is $$5$ per unit per year.

a$.$ To minimize the total cost, how many units should be ordered each time an order is placed?

$2$ x $400$ x $4/5^(1)/(2)=80$ units

b$.$ How many times would they have to order per year?

$400/80=5$ times a year

c$.$ What would be the total cost of inventory $($holding $+$ordering$)?$

ordering$(40$x$5)+$holding$(400$x$5)=$ $$2,200$

d$.$ If the holding cost per unit was $$6$ instead of $$5,$ what would be the optimal order quantity? What would be the $\%$ increase in cost if the EOQ calculated from part a is used, even though the holding cost is $$6?$

e$.$ If the ordering cost per unit was $$35$ instead of $$40($holding cost is still $$5),$ what would be the optimal order quantity? What would be the $\%$ increase in cost if the EOQ calculated from part a is used, even though the ordering cost is $$35?$