Prefab, a furniture manufacturer, uses 25,000 square feet of plywood per month. Its trucking company charges Prefab $450 per shipment, independent of the quantity purchased. The manufacturer offers an all-unit quantity discount with a price of $1.2 per square foot for orders under 25,000 square feet, $1 per square foot for orders between 25,000 square feet and 45,000 square feet, and 0.98 per square foot for orders larger than 45,000 square feet. Prefab incurs a holding cost of 25 percent. a) What is the optimal lot size for Prefab? b) What is the annual cost of such a policy? c) What is the cycle inventory of plywood at Prefab