Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Ann works 300 days per year so she needs to buy a total of 6,000 pounds of pepperoni. Order costs for pepperoni are $75 per order, and carrying costs are $.10 per pound per year. Ann has a hurdle rate of 10%, and the pepperoni that Ann buys from her supplier costs $3 per pound. 22. What is the EOQ for pepperoni? a. 1,000 pounds. b. 1,500 pounds. c. 2,000 pounds. d. 2,500 pounds. 23. What is the total relevant cost (ordering cost + carrying cost) for the year at an order size equal to the EOQ? $500 a. b. $550 C. d. $600 $650 24. What is the total relevant cost (ordering cost + carrying cost) for the year at an order size equal to 1,000 pounds? a. $500 b. $550 C. $600 d. 25. $650 If Ann Chovies, owner of the Perfect Pasta Pizza Parlor, decides to increase the number of pounds per purchase order, total carrying cost and the HINT: If it is not obvious, either draw a graph or total ordering cost total cost of having to have an inventory make up numbers and compare your answer to the answer you got for question 23. A) decreases, increases, increases B) decreases, increases, decreases C) decreases, decreases, increases D) increases, decreases, decreases E) increases, decreases, increases