EQQ analysis Tiger corporation purchases 1,210,000 units per year of one component. The fixed cost per order is $23. The annual carrying cost of the item is 25.7 of its $1.72 cost.

A.Determine EQQ if (1) the conditions stated above hold, (2) the order cost is zero rather than $23, and (3) the order cost is $23 but the carrying cost is $0.01.

B. What do your answers illustrate about EQQ model? Explain.