Company A is a small chain of stores catering to the do-it-yourself market with good-quality, well-priced tools for home repairs. Company A's sales are relatively stable at $1,250,000 with an average selling price of $50 and average cost of $11.50. The average cost to place an inventory order is $34 and the storage cost for its inventory is $10 per unit. Average days in inventory is 60. Company A's cost of capital is 12% and its tax rate is 28%.

Required:

a) If Company A orders 1,000 units per order, calculate the total annual after-tax order cost.

b) Calculate the after-tax cost of holding a unit of inventory.

c) Calculate the economic order quantity (EOQ).