Best Deal Depot purchases one model of computer at a wholesale cost of $300 per unit and resels it to end consumers. The annual demand for the company's product is 612,000 units Ordering costs are $1,245 per order and carrying costs are $65 per computer, including $30 in the opportunity cost of holding inventory Bequated Requirement 1. Compute the optimal order quantity using the EOQ model Begin by selecting the formula used to calculate EOQ (O-Demand in units for one year, POedering cost per purchase order. C-Carying cost of one unit in stock, G Amy order quantity) The optimal order quantity is (Round your final answer to the nearest whole number) Requirement 2. Compule (a) the number of orders per year and (b) the annual relevant total cost of ordening and carrying inventory (a) Compute the number of orders per year Determine the formula used to calculate number of orders per year and then calculate the number of orders per year (Round your answer up to the nearest whole number) Orders per your (b) Compute the annual relevant total cost of ordering and carrying inventory: (Round your answers to the nearest whole dollar The total relevant ordering costs are The total relevant carrying costs are The annual relevant total cost of ordering and carrying inventory are Requirement 3. Assume that when evaluating the manager, the company excludes the opportunity cost of carrying inventory if the manager makes the EOQ decision excluding the opportunity cost of carrying inventory, the relevant carrying cost would be $30, not 565 How would this affect the EOQ amount and the actual annual relevant cost of ordering and carrying inventory? Calculate the revised EOQ using the new carrying cost of $30 (Round your answer to the nearest whole number) The optimal order quantity Now find the revised total relevant cedering costs using the new carrying cost of $30 (Round your answer to the nearest whole dotar) The total relevant ordering costs are Now find the revised total relevant carrying costs using the new carrying cost of $30 (Round your answer to the nearest whole dollar) The total relevant carrying costs are The revised annual relevant total cost of ordering and carrying inventory is (Round your answer to the nearest whole dollar) Requirement 4. What is the cost impact on the company of excluding the opportunity cost of carrying inventory when making EOQ decisions? (Enter positive amounts only Round your answer to the nearest whole dollar) Because managers will choose make the EOQ decision excluding the opportunity cost of carrying inventory by using the carrying cost of $30. not $65, the cost to the company will be be if managers were evaluated based upon all carrying costs Why do you think the company currently excludes the opportunity costs of carrying inventory when evaluating the manager's performance? OA. Best Deal Depot probably does not include the opportunity costs of carrying inventory because it is tracked by the distribution system OB. Best Deal Depot probably does not include the opportunity costs of carrying inventory because it is backed by the human resource system OC Best Deal Depot probably does not include the opportunity costs of carrying inventory because it is tracked by the manufacturing system OD. Best Deal Depot probably does not include the opportunity costs of carrying inventory because it is not tracked by the financial accounting system What could the company do to encourage the manager to make decisions more congruent with the goal of reducing total inventory costs? The company could change the decisions more congruent with the goal of reducing total inventory costs thand would Even though this would involve en additional calculation encourage managers to make optimal Required 1. Compute the optimal order quantity using the EOQ model. 2. Compute (a) the number of orders per year and (b) the annual relevant total cost of ordering and carrying inventory. 3. Assume that when evaluating the manager, the company excludes the opportunity cost of carrying inventory. If the manager makes the EOQ decision excluding the opportunity cost of carrying inventory, the relevant carrying cost would be $30, not $65. How would this affect the EOQ amount and the actual annual relevant cost of ordering and carrying inventory? 4. What is the cost impact on the company of excluding the opportunity cost of carrying inventory when making EOQ decisions? Why do you think the company currently excludes the opportunity costs of carrying inventory when evaluating the manager's performance? What could the company do to encourage the manager to make decisions more congruent with the goal of reducing total inventory costs?