EOQ Analysis Tiger Corporation purchases 1,240,000 units per year of a component. The fixed cost per order is $27. The annual holding cost of the item is 26.7% of its cost of $2.04.

. Determine the EOQ if (1) the conditions stated above are met, (2) the order cost is zero instead of $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 costs, the EOQ is ___ units. (Round to the nearest integer. For infinity, enter INF)