A local furniture store is examining its inventory policy and considering using an economic order quantity (EOQ) approach for a popular table set that they have had difficulty keeping in stock. They haw the following information about the set: 

Annual demand = 5000 sets 

Current order quantity = 750 

Carrying cost - $2.00/unit/year 

Order cost = $450 

1. What is the current total annual cost? 
2. What is the economic order quantity? 
3. What is the total annual cost at the EOQ? 
4. If the store operates in 250 days during the year, what is the reorder point assuming there are no safety stocks?