## Inventory Cost Problem

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 "$" sign in your response.) Save =$