KraftyCity is a large retailer that sells power tools and other hardware supplies. One of its

products is the KraftyMan workbench. Information on the workbench is as follows:

Annual demand $=1,200$

Holding Cost $=$ $$15$ per year

Ordering Cost $=$ $$200$ per order

Answer the following questions:

$1.$ What is the economic order quantity for the workbench?

$2.$ Suppose that KraftyCity has to pay $$50$ per workbench for orders under $200$ but only $$42$ per

workbench for orders of $201$ or more.

a$.$ Now what order quantity should KrafyCity move forward with to minimize costs?

b$.$ How much would it save them?