1. Rocky Mountain Tire Company sells 20,000 go-cart tires per year. The ordering cost (cost to place a purchase order) for each order is $60, and the holding cost is 10% of the purchase price of the tire per year. They use a single supplier for their tires. The purchase price is $24 per tire. Given the above information, please answer the following questions: a) How many tires should Rocky Mountain order each time they place an order? You need to calculate the EOQ. b) What would the total cost of this order quantity be? You need to calculate the annual order cost (AOC) and annual holding cost (AHC).

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