Mike Sports Ltd. Is trying to improve its inventory control system and has installed an online inventory system. Mike Sports anticipates sales for 2022 to be 300,000 units, an ordering cost of $8 per unit, and carrying costs of $1.20 per unit. The variable cost is $12 per unit.
Given the information, calculate the following (show all calculations)

a. Calculate EOQ (1 mark)

b. Calculate the number of orders to be placed annually. (1 mark)

c. Calculate the average inventory level. (1 mark)

d. Mike Sports LTD has been offered a 15% discount if orders are placed quarterly. Should the present ordering policy of Mike Sports be changed from ordering at EOQ? Show your work. (4 marks)

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