(Solved): QUESTION 2 DEX Import-Export is the sole agent for the Excalibur motorcycle. Management estimates t ...

QUESTION 2 DEX Import-Export is the sole agent for the Excalibur motorcycle. Management estimates that the demand for these motorcycles is 10000 per year and that they will sell at a uniform rate throughout the year. The cost incurred in ordering each shipment of motorcycles is \( \$ 10000 \), and the cost per year of storing each motorcycle is \( \$ 200 \). DEX management faces the following problem: Ordering too many motorcycles at one time ties up valuable storage space and increases the storage cost. On the other hand, placing orders too frequently increases the ordering costs. How large should each order be, and how often should orders be placed, to minimize ordering and storage cost? Explain all your steps.