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 $2.50 and the cost of placing an order has been...

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 $2.50 and the cost of placing an order has been estimated to be $12.00. The store uses an inventory carrying charge of 25% of the acquisition cost per year. Determine:

1.) the optimal order quantity.

2.) The order frequency.

3.) The annual holding and setup cost.

4.) The supplier of the bath towel is offering a discount of $25 off each order if orders are placed in quantities of 500. Should the department store place orders for 500 units?