Magnetron, Inc. manufactures microwave ovens for the commercial market. Currently, Magnetron is producing part 2104. Next year's requirement for part 2104 is estimated at 20,000 units. Part 2104 is valued at $50 per unit, and the combined storage and handling cost is $8 per unit per year. The cost of preparing the order and making the production setup is $200.

a. Compute the economic order quantity
b. How many orders will be placed every year?
c. What is the expected annual holding cost?
d. What has the expected annual order cost?