Home Depot can sell 1,000 units per year at a price of $750 per unit. It estimates that it could sell 1,100 units per year if it dropped the price to $700, and that it would sell only 900 units if it raised the price to $800 per unit.

a. What is Home Depot's EOQ assuming that the quantity discounts are available and that sales are 900 units/year or 1,100 units/year?

b. What is the total annual inventory Cost (including cost, ordering cost, stock-out cost, and discounts taken) for each of the three unit prices?

c. Which price $700, $750, or $800 per unit, maximizes the annual profit Home Depot can expect to earn from selling these deluxe toilet units?