The soft goods department of a large department store sells 195 units per month of a certain large bath towel. The unit cost of a towel to the store is $2.50 and the cost of placing an order has been estimated to be $11.75. The store uses an inventory carrying charge of 11% of the unit cost. The store operates 280 days per year. Determine the following:

a.) Determine the optimal order quantity, order frequency, and the annual cost of inventory management.