Scenario 9.3 The Universal Computer Company uses a newly developed A1 chip in the manufacturer of their tablet computers. The estimated annual demand for this chip is 12,000 units. It is estimated that the cost to place an order is $75, and the holding cost for each chip is $20 per year. The company operates 320 days per year. A. Use the information in Scenario 9.3. What is the economic order quantity for the A1 chip?

B. Use the information in Scenario 9.3. What is the total annual holding and ordering costs if the Universal Computer Company orders using the EOQ quantity?