Chico's Chili (CC) is well known for making the best chili in Chicago. Chico makes a variety of different types of chili and customers can combine it together with any sides they like. Chico's chili is so popular that it uses about 120 kgs of ground beef per day and he is open 348 days per year.

Chico has been ordering beef once per week and has determined that it takes a hour to place an order. His hourly rate is $40. Chico has also determined that inventory spoilage is 1% and his interest rate on debt is 8%. Chico pays $10.00 per kg for his ground beef. The lead time to place a beef order up to delivery is 3 days.

Chico has just learned about something called the EOQ and now thinks if he might be able to save money by changing his order pattern. Please calculate the following: