Suppose a gift shop in Myrtle Beach has an annual demand for 16,000 units for a souvenir kitchen magnet that it buys for $0.60 per unit. Assume it costs $11 to place an order and the inventory carrying cost is 26% of the item's unit cost. Use Solver to determine the optimal order quantity if the company wants to minimize the total cost of procuring this item. (Suppose the gift shop currently makes orders quarterly. Set the convergence value for the Standard GRG Nonlinear Engine to at most 0.0000001.)

(a)

What is the optimal order quantity? (Round your answer to the nearest integer.)

(b)

What is the total cost (in dollars) associated with this order quantity? (Round your answer to two decimal places.)

$

(c)

What is the annual order cost (in dollars) for this solution? (Round your answer to two decimal places.)

$

What is the annual inventory holding cost (in dollars) for this solution? (Round your answer to two decimal places.)

$