Fiber Technologys controller, Jay Turnbull, recently attended a seminar on JIT purchasing. Afterward he analyzed the cost of storing XL-20, including the costs of wasted space and inefficiency. He was shocked when he concluded that the real annual holding cost was $32.20 per canister. Turnbull then met with Doug Kaplan, Fiber Technologys purchasing manager. Together they contacted Reno Industries, the supplier of XL-20, about a JIT purchasing arrangement. After some discussion and negotiation, Kaplan concluded that the cost of placing an order for XL-20 could be reduced to just $33. Using these new cost estimates, Turnbull computed the new EOQ for XL-20. The annual requirement is 7,200.

Use the equation approach to compute the new EOQ. Round answer to nearest whole number.

How many orders will be placed per year? Round answer to the nearest whole number.