Question $3$: $(2$ marks$)$

The soft goods department of a large department store sells $175$ units per month of a certain large bath towel. The unit cost of a towel to the store is $$2\mathrm{.}50$ and the cost of placing an order has been estimated to be $$12\mathrm{.}00.$ The store uses an inventory carrying charge of $I=27\%$ per year. Determine $($a$)$ the optimal order quantity, $($b$)$ the order frequency, and $($c$)$ the annual holding and setup cost. If$,$ through automation of the purchasing process, the ordering cost can be cut to $$4\mathrm{.}00,$ what will be $($d$)$ the new economic order quantity, $($e$)$ the order frequency, and $($f$)$ annual holding and setup costs?

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