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Question 2 (7 points) Saved Fisk Corporation is trying to improve its inventory control system and has installed an online system at its retail stores.

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Question 2 (7 points) Saved Fisk Corporation is trying to improve its inventory control system and has installed an online system at its retail stores. Fisk anticipates sales of 80,000 units per year, an ordering cost of $7.80 per order, and carrying costs of $1.20 per unit. Fisk currently orders its stock in quantities of 1,200 per qrder. HINT: Even though you cannot order a fraction of a unit, do ALL of your calculations to two decimals to maintain accuracy. 1. Is Fisk minimizing it total inventory costs? Show your work to justify your answer. 2. What would the total cost of inventory be for the firm if it ordered its stock at the economic order quantity? (2 decimals)

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