QUESTION:1 The Pluto Company has been buying a given item in lots of 3,200 units which is quarterly supply. The cost per unit is $ 15, order cost is $ 15 per order and carrying cost is 20%. Required: If the company uses the following lots, how much the company will save with compare to existing? Semi Annually Monthly Bi-Monthly What is the most economic among the above mentioned scenarios QUESTION:2 Nantucket Tees manufactures t-shirts and decorates them with custom designs for retail sale in the premises. Several costs incurred by the company are listed below. For each identify the most needed Cost Items: 1. Depreciation of sewing machines 2. Rent on building. Part of buildings first floor is used to make and paint t-shirts. Part of it is used for retail sales shop. The second floor is used for administrative offices and storage of raw material and finished goods 3. Salaries of designers who experiment with new fabrics, paints and t-shirt designs 4. Cost of hiring a pilot to fly along the beach pulling a banner advertising the shop 5. Salary of owners secretary 6. Cost of repairing the gas furnace 7. Cost of health insurance for the production employees 8. Cost of fabric used in t-shirts 9. Wages of the employee who repairs the firms sewing machines 10. Cost of electricity used in sewing department.