4. (10 points) a) Acton Manufacturing is considering a new credit policy. The current policy is cash only. The new policy would require them to extend credit for one period. Price per unit under both policies is $175, and variable cost per unit under both is $130. Fixed costs would also be the same under both. If the interest rate is 2% per month, should Acton make the switch? b) Acton starts each month with 1000 units. The stock is depleted each month and reordered. The carrying cost is $1 per unit and the fixed cost is $5. Calculate the EOQ for Acton. 4. (10 points) a) Acton Manufacturing is considering a new credit policy. The current policy is cash only. The new policy would require them to extend credit for one period. Price per unit under both policies is $175, and variable cost per unit under both is $130. Fixed costs would also be the same under both. If the interest rate is 2% per month, should Acton make the switch? b) Acton starts each month with 1000 units. The stock is depleted each month and reordered. The carrying cost is $1 per unit and the fixed cost is $5. Calculate the EOQ for Acton