Point usesthe economic order quantity (EOQ) model to establish the reorder quantity for raw materialY.The company holds no bufferinventory.Information relating to rawmaterial Yis as follows: Annual usage 48,000 units Purchaseprice $80perunit Orderingcosts $120 per order Annualholdingcosts 10% of the purchase price Questions: 1 What isthe EOQ for raw material Y? 2 What is the total annual cost of purchasing, ordering and holding inventory of raw material Y? 3 The supplier has offered Point a discount of 1% on the purchase price if each order placed is for 2,000 units. What is the total annual saving to Point of accepting this offer?