You are purchasing manager at Perot's Menswear. You must make sure the store is fully stocked. You sell only one item-a blue shirt. It costs s25 to place each order and each shirt costs $47.50. Your annual holding cost is 22% of the purchase price per shirt The demand currently is 500 shirts per month. Do not consider backorders because Perot hates backorders. Round calculations to the nearest whole shirt.
a. How many shirts should you order each time?
b. What will be your average number of orders per year?
c. what will be your average annual holding cost and your average annual order cost?