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Kamal Corporation sells 62.000 iPhone covers each year. These covers are sold evenly throughout the year. Ordering costs are $225 per order, and carrying costs

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Kamal Corporation sells 62.000 iPhone covers each year. These covers are sold evenly throughout the year. Ordering costs are $225 per order, and carrying costs are $3.10 per unit per year. Suppose the manager predicts ordering costs to be $100 instead of the actual $225 when calculating the order quantity. What is the cost of the prediction error? Step 1: Start by calculating the EOO and RTC given the actual amount of the cost per purchase order Begin by selecting the formula used to calculate EOO D-Demand in units for one year, P stock, Q Any order quantity, RTC- relevant total costs.) Ordering cost per purchase order, C-carrying cost of one unit in Round your answer to the nearest whole number.) The EOO if the manager used the correct ordering costs isunits. Now determine the formula used to calculate the annual relevant total costs. (RTC relevant total cost, D- Demand in units for one year, P Ordering cost per purchase order, C Carrying cost of one unit in stock, Q-Any order quantity.) Round your answer to the nearest whole number) If the manager used the correct ordering costs for calculating EOQ, the RTC is Step 2: Compute the EOQ and RTC based on the incorrect predicted amount of the cost per purchase order when calculating the EOQ Begin by calculating the EOQ, then calculate the RTC. (Round your answers to the nearest whole number.) The EO0 if the manager used the incorrect ordering costs isunits If the manager used the incorrect ordering costs for calculating EOQ, the RTC iss Step 3: Compute the difference between the monetary outcome from step 1 and step 2 Monetary Outcome Step 1 Step 2 Difference

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