Exhibit Palmer PensAssume that Palmer Executive Pens uses $1,440,000$ gallons of ink each year. Further, assume that Palmer can order the ink at a cost of $$2$ per gallon plus fixed ordering costs of $$100$ per order. The firm's carrying cost is $20$ percent of the inventory value, at cost$\mathrm{.}8.$ Refer to Exhibit Palmer Pens. What is Palmer's minimum cost of ordering and holding inventory $($TIC at EOQ$)?$a$.$ $$6,254$b$.$ $$10,733$c$.$ $$11,560$d$.$ $$13,563$e$.$ $$19,8259.$ Refer to Exhibit Palmer Pens. Now, suppose the manufacturer offers a discount of $0\mathrm{.}5$ percent $($on purchase price$)$ for orders of $40,000$ gallons. Should Palmer increase its ordering quantity to take the discount?Yes; it will save $$827$ if it takes the discount.No; it will lose $$827$ if it takes the discount.Yes; it will save $$14,400$ if it takes the discount.Yes; it will save $$13,573$ if it takes the discount.No; it will lose $$13,573$ if it takes the discount.