. A manufacturer produces bicycles. Special screws are produced within the plant. Four special

screws are necessary for each bicycle. A total of 1200 bicycles are made each year; the total

set-up cost for machinery is $15, while the storage cost is 10% of the screw's cost of $0.30.

There are 240 working days per year, and 960 screws per day can be made (2 per minute x

60 minutes x 8 hours).

1. Calculate the EOQ assuming instantaneous receipt.
2. Calculate the EOQ assuming noninstantaneous receipt.