USE THE FOLLOWING INFORMATION FOR QUESTIONS 7 & 8 Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 30 pounds of pepperoni each day in preparing pizzas. Ann works only 100 days per year so she needs to buy a total of 3,000 pounds of pepperoni for the year. Order costs for pepperoni are $100 per order, and carrying costs are $.25 per pound per year. Ann has a hurdle rate of 12%, and the pepperoni that Ann buys from her supplier costs $5 per pound. 7. What is the EOQ for pepperoni (rounded to the nearest whole number)? a. 740 pounds. b. 840 pounds. c. 940 pounds. d. 640 pounds. 8. What is the total relevant cost (ordering cost + carrying cost) for the year (rounded to the nearest dollar) at an order size equal to 500 pounds? a. $512 b. $712 c. $612 d. $812 USE THE FOLLOWING INFORMATION FOR QUESTIONS 9 & 10 Ann Chovies, owner of the Perfect Pasta Pizza Parlor, wants to calculate her reorder point. Her average usage is 30 pounds of pepperoni each day with an average lead time of 4 days. 9. What is the reorder point if usage can be as high as 36 pounds per day? a. 124 pounds b. 134 pounds c. 144 pounds d. 154 pounds 10. What is the reorder point if the lead time can be as high as 5.5 days? a. 155 pounds b. 165 pounds c. 145 pounds d. 135 pounds