Please explain the answer

Thank you

PROBLEM SITUATION #7 A local craft shop has contracted to manufacture an item for sale at the hospitality booth at the local visitors' center. The manager of that booth is agreeable to the craft shop delivering finished goods at the shop owner's convenience. The items are relatively small and lightweight, so the primary cost of shipping is the relatively fixed cost of a trip across town. Relevant data for the shop are as follows: Annual demand (D)= 3500 units Ordering (shipping) cost (C.) = $12 per order Holding cost ()= $.50 per unit per year 1. If the shop owner's objective is to minimize total inventory costs, how many should she manufacture and accumulate into her inventory before shipping them to the hospitality booth? All answers have been rounded to whole numbers. a. 1296 b. 292 c. 410 d. none of the above is correct e. cannot be determined; the EOQ model does not apply 2. If the shop owner practices EOQ inventory management, what will her average inventory be, and what will be her annual holding costs? All answers have been rounded to whole units and dollars. a. 205 units: $205 in carrying costs b. 410 units; $205 in carrying costs 205 units; $102.50 in carrying costs d. 292 units, $146 in carrying costs none of the above is correct c. e. 3. a. If the shop owner practices EOQ inventory management, how often will she make the trip to deliver finished goods to the visitors' center? about 12 times per year (every 30 days) b. about 43 times per year (every 8 days) C. whenever the visitor's center needs delivery d. about 8 times per year (every 43 days) none of the above is correct e. 4. If the visitors' center has a policy change and wants deliveries made once a month, how much extra will it cost the craft shop, if it chooses to comply with the request? a. the cost of 3 % extra trips to the visitors' center, or $42 b. there is no extra cost associated with the policy change $12 d. $217 none of the above C e. 19 If the visitors' center were to require replenishment once per week, how much extra would it cost the craft shop to comply? the cost of the extra trips, or $522 b. $641 a. c. $624 d. $453 e. $320