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The Marino Company predicts that 3,600 units of material will be used during the year. The expected daily usage is 20 units, there is an expected lead time of 8 days, and there is a safety stock of 400 units. The material is expected to cost $6 per unit. It is estimated that it will cost $25 to place each order. The annual carrying cost is $1 per unit.

Required:

a.	Compute the order point.
b.	Determine the most economical order quantity by use of the formula.
c.	Compute the total cost of ordering and carrying at the EOQ point.