A. Mama Leone's Frozen Pizzas uses 62,000 pounds of cheese per year. Each pound costs $5.50. The ordering cost for the cheese is $1366.80\ per order, and its carrying cost is $2.68 per pound per year. Calculate the firm's economic order quantity (EOQ) for the cheese. Mama Leone operates 230 days per year and maintains a minimum inventory level of 4 days' worth of cheese. Assuming that the lead time to receive orders of cheese is 5 days, calculate the reorder point.

B. Klein's Tools is considering offering a cash discount to speed up the collection of accounts receivable. Currently, the firm has an average collection period of 69 days, annual sales are 34,000 units, the per-unit price is $36, and the per-unit variable cost is $27. A 2% cash discount is being considered. Klein's Tools estimates that 76% of its customers will take the 2% discount. If sales are expected to rise to 36,000 units per year and the firm has a 14% required rate of return, what minimum average collection period is required to approve the cash discount plan?