(September, 2019) Question os CInventor) chess sent to Orange manufactures a range of electronic products. The supplier of component XY has informed Orange that it will offer a quantity discount of 1.0 per cent if Orange places an order of 10 000 components or more at any one time. Details of component XY are as follows: Cost per component before discount Rs.2.00 Annual purchases 150 000 components Ordering costs Rs.360 per order Holding costs Rs.3.00 per component per annum Required: a. Calculate the total annual cost of holding and ordering inventory of component XY using the economic order quantity and ignoring the quantity discount. b. Calculate whether there is a financial benefit to Orange from increasing the order size to 10 000 components in order to qualify for the 1.0 per cent quantity discount