Leilani$$ Lavender's law office has traditionally ordered ink refills $55$ units at a time. The firm estimates that carrying cost is $40\%$ of the $$$$11$ unit cost and that annual demand is about $240$ units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be$$ optimal?

Part $2$

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

Its action would be optimal given an ordering cost of $$$

$$

enter your response here per order $($round your response to two decimal$$ places$).$

Part $3$

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

A$.$

The order quantity should not be changed.

B$.$

The order quantity should be increased.

C$.$

The order quantity should be decreased.