7. KLM, Inc. sells 13,000 units of an item each year. The carrying cost per unit is $.60 and the fixed costs per order are $55. What is KLM's economic order quantity? What is KLM's average inventory? How many times per year would KLM restock? What are KLM's total costs of holding inventory? (SHOW YOUR WORK) ANSWER (4 POINTS) 8. XYZ, Inc. currently sells 130 units a month at a price of $210 a unit. XYZ thinks it can increase its sales by an additional 50 units if it switches from its current for cash only policy to a net 30 credit policy. The monthly interest rate is .6 percent and XYZ's variable cost per unit is $125. What is the net present value of the proposed credit policy switch? (SHOW YOUR WORK) ANSWER (3 POINTS)