Question

Question 1 1 pts Suppose Stanley's Office Supply purchases 90,000 boxes of pens every year. Ordering costs are $110 per order and carrying costs are $0.75 per box. What is Stanley's EOQ in Boxes? Enter your answer rounded to two decimal places. For example, if your answer is 12.345 then enter as 12.35 in the answer box. Do not enter comma in the answer box Question 2 1 pts Suppose Stanley's Office Supply purchases 90,000 boxes of pens every year. Ordering costs are $133.95 per order and carrying costs are $0.75 per box Moreover, management has determined that the EOQ is 5,669.92 boxes. Note: The ordering costs and EOQ differ from problem 1. The vendor now offers a quantity discount of $0.02 per box if the company buys pens in order sizes of 10,000 boxes. Determine the before-tax benefit or loss of accepting the quantity discount. (Assume the carrying cost remains at $0.75 per box whether or not the discount is taken.) Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

these are connected I would appreciate if you help me solve them they are due in 15 min thanks

Answer 1

CH EOQ calcul ahon Formula = 2xDxS SE Cost Cost vunt D = Annual Demand pee ordes per Hi Holding wit H C 513 8093 26400 poo 5138.09 Boxes, Amoy so EOQ is Calulation dx 90,000 x $110 $0.75 198000vo $0.75 of befourtax benenfut / clon) hooox Total Orele cost + 90000_* $133.95 + $133.95+ 0 5669.92 0.75 5669.92 $ 2126.22 + $ 2126-22 Carrying cost Toral cost at EOQ $ 45 $4252-44 Disc Total cost at Discount 90000 x $133.95 + 193434 Kance song- out! 10000 $1205.55 + $3750 $0.02% 90000 $ 4955.55 $1800 $ 3,155.55 So There is sa is saving / Profit $ 4252.44 - $3155.553) $1098.89 Amwser > 5138.09 Boxes 2- $1098.89 Profit