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Scenario II (10 pt) The manager wants to investigate if they can subcontract this and buy lights from a third party. The demand stays as

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Scenario II (10 pt) The manager wants to investigate if they can subcontract this and buy lights from a third party. The demand stays as before has orders for about 12,000 per year. The ordering cost per procurement is $20 per order. The third party will charge 12% commission on item cost (1.12\$ per flash light). The advantage would be that the holding cost would decrease by 30% (\$0.07 per light per year). e. What is economical order quantity? (3 pt) f. What is the total cost per year, including the cost of the lights? ( 3pt )

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