EOQ analysis

Tiger Corporation purchases 1,400,000 units per year of one component. The fixed cost per order is $55. The annual carrying cost of the item is 27.1% of its $10.06 cost.

a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is $1.00 rather than $55, and (3) the order cost is $55 but the carrying cost is $0.01. ? units (Round to the nearest integer. For infinity, input INF)

b.What does the answers illustrate about the EOQ model? Explain.