1. The EOQ formula is given here: EOQ- 2x Ordering Cost x Demand Holding Cost and Total Cost (Tc)is expressed as: Te- Demand Order Quantity x Ordering Cost () x Order Quantity x Holding Cost + Total Purchase cost A Clinical laboratory uses 250 gallons of a certain solvent per year at a purchase price of 2.50 per gallon. The cost associated with placing an order is 8 and withholding stock (on an annual basis) is 20 percent of the purchase cost per unit. If the basic conditions of the EOQ model apply, compute the following: What is the total cost? (10 marks)