A company produces milk base shakes for weight loss. It reqires 0,04 litres of soy milk and produces and sells 562,500 grams of shakes annually. The cost to place a single order is $60 per hour and the annual carrying cost inventory is 5% of the cost of the cost of the soy milk per annum. The normal time to place an individual order is 2 hours. Currently, the company orders nine (9) times per year. The main supplier of the soy milk advised the financial controller that a 6% discount would be given if the entity doubles its current lot size. He also informed that a further 6% would be given if the entity tripled its current lot size. The material is currently bought from its suppliers for $ 60 per kilogram.

(A) calculate the economic order quantity (EOQ) 4 marks

(B) calculate the total cost based on the eoq 4 marks

(C) calculate the total cost for each alternate order, including the current policy 12marks

(D) what is the optimal order quantity and why? 2marks