Dr. Strangelove loves animals and lives with many dogs/cats: he purchases 16 bags of pet foods a year. Regardless of how many bags he purchases at one time, it costs $12 to make a single visit to a pet store. (I.e., the ordering cost is $12). An annual holding cost in his house is $6 per bag. If he purchases eight bags each time, how much is the total annual holding cost he expects to pay and how much is the total annual ordering cost (i.e., annual cost to visit the store) he expects to pay?

Dr. Strangelove loves animals and lives with many dogs/cats: he purchases 16 bags of pet foods a year. Regardless of how many bags he purchases at one time, it costs $12 to make a single visit to a pet store. (I.e., the ordering cost is $12). An annual holding cost in his house is $6 per bag. If he purchases eight bags each time, how much is the total annual holding cost he expects to pay and how much is the total annual ordering cost (i.e., annual cost to visit the store) he expects to pay? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $24 and $24 respectively b $20 and $20 respectively $30 and $20 respectively d $36 and $18 respectively e $30 and $24 respectively This is the continuation from the previous question. Dr. Strangelove has been purchasing eight units each time he runs out of products. Recently, he found a holding cost was decreased. Should he increase or decrease the number of units he purchases each time he runs out of products? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a He should increase the number of units he purchases each time. b He should decrease the number of units he purchases each time. He should not change the number of units he purchases each time. d The number of units he purchases each time can be any number e No answer above is correct