Morgan Company s annual demand for Model X253 is 10,000 units. Morgan is unsure about the relevant..

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Morgan Company s annual demand for Model X253 is 10,000 units. Morgan is unsure about the relevant carrying cost per unit per year and the relevant ordering cost per purchase order. This table presents six possible combinations of carrying and ordering costs. Relevant Carrying Relevant Ordering Cost per Unit per Year Cost per Purchase Order $10 ……………………………………. $300 10 …………………………………….. 200 15 …………………………………….. 300 15 …………………………………….. 200 20 …………………………………….. 300 20 …………………………………….. 200 Required 1. Determine EOQ for Morgan for each of the relevant ordering and carrying-cost alternatives. 2. How does your answer to requirement 1 give insight into the impact on EOQ of changes in relevant ordering and carrying costs?

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