HenryCrouch's law office has traditionally ordered ink refills 70 units at a time. The firm estimates that carrying cost is 35% of the $11 unit cost and that annual demand is about 240 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action beoptimal?

a) Its action would be optimal given an ordering cost of how much per order? (round your response to two decimalplaces).

b) If the true ordering cost turns out to be much greater than your answer to (a), what is the impact on the firms ordering policy?