Melchar Company uses 72,601.25 pounds of oats each year. The cost of placing an order is $18, and the carrying cost for one pound of oats is $0.45.

Required:

1. Compute the economic order quantity for oats. If required, round your answer to the nearest whole number.

pounds

2. Compute the carrying and ordering costs for the EOQ. If required, round your answers to the nearest cent.

Carrying cost	$
Ordering cost	$