Clement Bait & Tackle have been purchasing a chemical water conditioner for their bait (to help keep their baitfish alive) in an optimal way using EOQ analysis. The supplier has now offered Clement a $0.50 discount on all units if the company purchases quarterly. The current data of the problem are: D=1800 units per year; S = $6.00, I = 15% per year; P = $25.

1. a. What is the EOQ at current behavior?
2. 
   
3. b. What is the total annual cost of continuing your current behavior based on EOQ?
4. 
   
5. C. What is the total annual cost, if they accept the proposed discount?
6. 
   
7. d. At the lesser of the two total costs, are the transportation costs equal to the ordering costs and should they accept the offer? Explain.
8. 
   
9. 
   
10. Please show the work.