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Invitation Inc. sells 2,500 items during a 200-day period. Ordering costs are 150 per order and holding costs are 10 per unit per 200 days.

Invitation Inc. sells 2,500 items during a 200-day period. Ordering costs are 150 per order and holding costs are 10 per unit per 200 days. Calculate Economic Order Quantity (EOQ), order costs and holding costs. Suppose Invitation Inc. changes its order level from EOQ to 100. How do order and holding costs change? Explain your answer.

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