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A restaurant purchases paper napkins in packages of 1000. Demand for napkins at this restaurant is about 1,215 packages a year. It costs $10 to order and receive a shipment of napkins, and carrying costs per package are $75 per year.
a. Compute the total of ordering and carrying costs for napkins. (Round to the nearest whole number, but do not type the dollar sign.)
Total cost $
b. Calculate the change in total annual cost, if per-package holding costs went up by $9 per year. (Round your intermediate calculations to 2 decimal places and final answer to 2 decimal places, but do not type the dollar sign.)
Increase by $
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