1. Graham Tire has projected sales of 84,000 tires this year with an ordering cost of $4.00 per order and carrying costs of $2.00 per tire.Find:(1) the economic ordering quantity; (2) the number of orders to be placed during the year; and (3) the average inventory.

1. Driscoll International keeps local currency bank accounts in the dozens of different countries in which it operates.Assume that the Argentine account with a balance of 221,643.49 pesos is worth $40,000.The company earned 14% interest on the account, but the Argentine peso declined against the dollar by 10%.Find (1) the value of Driscoll's holdings in US dollars at year end; (2) the value of Driscoll's holdings in US collars if the interest earned was 8% and the peso went up 16% against the dollar.