Garden variety flower shop uses 830 clay pots a month. The pots are purchased at $3.40 each. Annual carrying costs per pot are estimated to be 10...

Garden variety flower shop uses 830 clay pots a month. The pots are purchased at $3.40 each. Annual carrying costs per pot are estimated to be 10 percent of cost and ordering costs are $10 per order. The manger has been using an order size of 2000 flower pots.

a.      What additional annual cost is the shop incurring by staying with this order size?

b.      Other than cost savings, what benefit would using the optimum order quantity yield (relative to the order size of 2000