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The office manager for the Gotham Life Insurance Company orders letterhead stationery from an office products...

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Accounting

The office manager for the Gotham Life Insurance Company ordersletterhead stationery from an office products firm in boxes of 500sheets. The company uses 6,500 boxes per year. Annual carryingcosts are $3 per box, and ordering costs are $28. The followingdiscount price schedule is provided by the office supply company:Order Quantity (in boxes) Price per Box 200-999 $16 1000-2999 143000-5999 13 6000+ 12 a. Determine the optimal order quantity andthe total annual inventory cost. b. Determine the optimal orderquantity and total annual inventory cost for boxes of stationery ifthe carrying cost is 20% of the price of a box of stationery.

Please put answers in the excel format.

ORDERINGORDERINGORDERINGORDERING
EOQ        1,000        3,000     6,000
                 =
Average inventory =  
Annual carrying cost =
Number of orders =  
Annual order cost =  
Total inventory purchase cost
Total inventory cost =

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