PLEASE BE DESCRIPTIVE AND SHOW ALL WORK (INCLUDING FORMULAS).

P15-5 EOQ analysis Tiger Corporation purchases 1,400,000 units per year of one compo- nent. The fixed cost per order is $55. The annual carrying cost of the item is 27% of its $10 cost. a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is $1 rather than $55, and (3) the order cost is $55 but the carrying cost is $0.01. b. What do your answers illustrate about the EOQ model? Explain