The Stem Grocery orders most of its items in lot sizes of 10 units. The average annual demand per side of beef is 720 units per year. Ordering costs are $25 per order with an average purchasing price of $100. Annual inventory carrying costs are estimated to be 40% of the unit cost.

Required:

1. Determine the economic order quantity.
2. Determine the economic order quantity if the carrying costs are 50% of unit cost.
3. Determine the total ordering costs under both a and b