C. Bling It is considering offering a 2% cash discount.

• Its average collection period of 50 days is expected to decrease to 25days.
• 40% of the customers are expected to take advantage of the discount
• Annual sales are $1,268,400
• Its pretax required rate of return is 20%

D. Find the total costs given the following information:

• Annual demand 194,701
• Ordering cost $17
• Carrying cost $10
• Optimal ordering quantity 1,494

Note: since this question is generated for each student, the EOQ that you'd get from the formula may not match what you are given here. For simplicity, use the one given here.