The ACE Publishing Company is printing a textbook for a course in production control. They estimate the demand to be 12000 books per year. The inventory carrying costs are estimated at $2/book/year, each order requires a fixed setup cost of $1000, and up to 15000 books may be printed and bound per year. No shortages are allowed, for if the publisher is out of stock, a professor will adopt another text. Leave your answer with 2 decimals and use (.) as decimal separator.

(a)What are the inventory cost for optimal production quantity for ACE? Inventory cost =Answer

(b)Suppose that the publisher is in error, and the actual demand is 4608 copies per year. What are the (correct) optimal production quantity for ACE? Correct EPQ is =Answer 

(c)How much would ACE be willing to pay to have a perfect estimate of demand? Willingness to pay =Answer