2. M.P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected usage for this component is 8,400 units per year. There are two suppliers on the market that offer the regulator component required by VanOyen: Allen Manufacturing and Bearkat Manufacturing. The cost for placing an order at either of these companies is $50 per order, and the holding cost per unit is 30% of the item's purchase price annually. The prices offered by each firm are shown in the table below: Allen Bearkat Quantity Unit Price Quantity Unit Price 1-499 16.00 1-399 16.10 500+ 15.50 400+ 15.60 Given the above information, please answer the following questions: a) What is the economic order quantity (EOQ) for each supplier individually? b) Which supplier will M.P. VanOyen end up using? Why?

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