1. Garden Variety Flower Shop uses 810 clay pots a month. The pots are purchased at $3.30 each. Annual carrying costs pe

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answerhappygod
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1. Garden Variety Flower Shop uses 810 clay pots a month. The pots are purchased at $3.30 each. Annual carrying costs pe

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1.
Garden Variety Flower Shop uses 810 clay pots a month. The potsare purchased at $3.30 each. Annual carrying costs per pot areestimated to be 20 percent of cost, and ordering costs are $15 perorder. The manager has been using an order size of 1,750 flowerpots. a.What additional annual cost is the shop incurring bystaying with this order size? (Round your optimalorder quantity to the nearest whole number. Round all otherintermediate calculations and your final answer to 2 decimalplaces.)b.Other than cost savings, what benefit wouldusing the optimal order quantity yield (relative to the order sizeof 1,750)? (Use the rounded order quantity from Parta. Round your final answer to the nearest wholepercent.)
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