[Case 7 (33/100 p.) Round all numbers to 2 decimal places. The northwestern division of ABC Ltd. is responsible for providing dependable electric service to customers in and around the area of Greater Toronto. One material used extensively to provide this service is the 1/0 AWG aluminum triplex cable, which delivers the electricity from the distribution pole to the meter loop on the house. The northwestern division purchases the cable that this division will use. For the coming year, this division will need 600,000 meters of this service cable. The current cost of this cable is $1.2 per meter. Under the present arrangement with the supplier, the division simply takes one twelfth of its annual need every month. Associated with each shipment are ordering costs of $50, which include all the costs from making the purchase requisitions to issuing a to be 2.5% of the purchase price per unit per quarter. Because ABC is a government-regulated, investor-owned utility, both the Ontario public services and its stockholders watch closely how effectively the company, including inventory management, is managed. a. (16 p.) Calculate the total annual inventory cost under the current ordering system. Show all your calculations. 2. (17 p.) Can the current system be improved? If so, how? Show all your calculations. Fully discuss your results