Q5.13 (Algo) Powered by Koffee [5.6] Powered by Koffee (PBK) is a new campus coffee store. PBK uses 50 bags of whole bean coffee every month, and you may assume that demand is perfectly steady throughout the year. PBK has signed a yearlong contract to purchase its coffee from a local supplier, Phish Roasters, for a price of $35 per bag and an $95 fixed cost for every delivery independent of the order size. The holding cost due to storage is $1 per bag per month. PBK managers figure their cost of capital is approximately 2 percent per month. (a) What is the optimal order size, in bags? (Round the answer to 2 decimal places.) (b) Given your answer in (a), how many times a year does PBK place orders? (Do not round intermediate calculations. Round the answer to the nearest whole number.) (c) Given your answer in (a), how many months of supply of coffee does PBK have on average? (Do not round intermediate calculations. Round the answer to 2 decimal places.) (d) On average, how many dollars per month does PBK spend to hold coffee (including cost of capital)? (Do not round intermediate calculations. Round the answer to 2 decimal places.)