A store in Central Market in Denver stocks and sells a particular brand of personal computers. It costs the store $$450$ each time it places an order with the computer supplier. The annual cost of carrying the

PC in inventory is $$150$ each. The store manager estimates that annual demand for the PCs will be $2500$

units. The computer purchase price is $$500$ each.

$1)$ Determine the optimal order size that minimizes total cost.

$2)$ Determine the total annual cost under the EOQ.

$3)$ Another computer supplier suggests that they can sell the same computers for $$480$ each, but

they are located far from the store which will cost $$600$ each time it places an order. Should the

store use this new supplier to minimize the annual total cost?