QUESTIONS TO ANSWER: (PLEASE ANSWER ALL)

1. What is the annual carrying cost for the zen-zens?

2. What is the annual ordering cost for the zen-zens?

3. What is the optimal order quantity for the zen-zens?

4. At the EOQ, what is the new total inventory cost?

Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order zen-zens 24 times over the next year. The carrying cost is $0.01 per zen-zen per year. The order cost is $562 per order. What are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens? Verify your answer by calculating the new total inventory cost. What is the annual carrying cost for the zen-zens? $ (Round to the nearest dollar.)