EOQ analysisTiger Corporation purchases 1,240,000 units per year of one component. The fixed cost per order is $27. The annual carrying cost of the item is 26.7% of its $2.04 cost.

a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is zero rather than $27, and (3) the order cost is $27 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)