I'm having issues finding the answer to anything relating to the $55 unit cost. Here is the full problem, including the answers that I've been able to find thus far:
Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand = 24 units per day Average lead time = 30 days Item unit cost = $55 for orders of less than 220 units Item unit cost = $53 for orders of 220 units or more Ordering cost = $27 Inventory carrying cost = 20% The business year is 260 days. Assume there is no uncertainty at all about the demand or the lead time
(1) Calculate EOQ if unit cost is $55 and $53. (Round up your answer to the next whole number.)
Unit cost at $55 = 175 units
Unit cost at $53 = 178 units
(2) Calculate annual ordering costs for each alternative? (Round your answers to 2 decimal places.Omit the "$" sign in your response.)
Unit cost at $55 = $
Unit cost at $53 = $ 765.82
(3) Calculate annual inventory carrying costs for each alternative? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Unit cost at $55 = $
Unit cost at $53 = $ 1,166
(4) Calculate annual product costs for each alternative? (Omit the "$" sign in your response.)
Unit cost at $55 = $ 343,200
Unit cost at $53 = $ 330,720
(5) What will be the total costs for each alternative? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Unit cost at $55 = $
Unit cost at $53 = $ 332,651.82
(6) How many chairs should the firm order each time?
Order quantity = 220 chairs
(7) How much the firm can save by placing the order? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Save = $