Leilani Lavender's law office has traditionally ordered ink refills $50$ units at a time. The firm estimates that carrying cost is

$40\%$ of the $$12$ unit cost and that annual demand is about $235$ units per year. The assumptions of the basic EOQ model

are thought to apply. For what value of ordering cost would its action be optimal?

a$)$ For what value of ordering cost would its action be optimal?

Its action would be optimal given an ordering cost of $ per order $($round your response to two decimal places$).$

b$)$ If the true ordering cost turns out to be much greater than your answer to part $($a$),$ what is the impact on the firm's

ordering policy?

A$.$ The order quantity should not be changed.

B$.$ The order quantity should be decreased.

C$.$ The order quantity should be increased.