A wholesaling business purchases an item from a manufacturer at a cost of $50 per unit.On average, the business sells 12,500 units of this item each year to retailers. It costs the wholesaler $22 per order to process a purchase transaction and receive its shipment.The annual inventory carrying cost per unit for the item is 40% of its purchase cost per unit per year.

1. Using the Basic Economic Order Quantity model,what is the EOQ for this item?Round answer to1decimal.
2. How many orders per year will be placed for this item?Round answer to1decimal.
3. What will the average inventory amount be for this item?Round answer to1decimal.
4. What is the total annual cost(including purchasing cost,ordering cost,and holding cost)if we order in Basic EOQ amounts?Round cost to a whole dollar amount.