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M11.4 Sylva Community Hospital orders latex sanitary gloves from a hospital supply firm. The hospital expects to use 50,000 pairs of gloves per year.

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M11.4 Sylva Community Hospital orders latex sanitary gloves from a hospital supply firm. The hospital expects to use 50,000 pairs of gloves per year. The cost to order to place an order is $95. The annual carrying cost is 18 %/year. The hospital supply firm offers the following quantity discount schedule ORDER QUANTITY 0-9,999 10,000-19,999 20,000-29,999 30,000-39,999 UNIT PRICE $1.34 1.32 1.30 1.28 1.26 40,000-49,999 a) What is the EOQ when the unit price is $1.34? b) What is the total cost (holding+ purchase+ ordering) when purchasing from the supplier where the unit price is $1.32? c) What is the total cost (holding+ purchase+ ordering) when purchasing from the supplier where the unit price is $1.30? d) What is the total cost (holding+ purchase+ ordering) when purchasing from the supplier where the unit price is $1.28? e) What is the total cost (holding+ purchase ordering) when purchasing from the supplier where the unit price is $1.26? f) Based on the total costs, what quantity should be ordered from the supplier when placing an order?

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