Response to the following questions:
1. The Peach Company has determined that it's cash EOQ is $100,000. What does this mean?
2. The Pear Company is applying the Miller-Orr model to their cash management. They determined that the return point is $12,000, the lower limit is $5,000, and the upper limit is $26,000. Explain what this information means to Pear's cash management.