EOQ analysis:Tiger Corporation purchases 1,200,000 units per year of one component. The fixed cost per order is $25. The annual carrying cost of the item is 26.9% of its $1.54 cost.

a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is zero rather than $25, and (3) the order cost is $25 but the carrying cost is $0.01.

b.What do your answers illustrate about the EOQ model? Explain.

a. (1) If there are no changes in the costs, the EOQ is _______ units.(Round to the nearest integer. For infinity, input INF)