Question: 12. EOQ Calculation: Bell Tower Computer Company has annual demand for their ultrabook of 10,000 computers. They want to determine EOQ for mother boards (one

12. EOQ Calculation: Bell Tower Computer Company has annual demand for their ultrabook of 10,000 computers. They want to determine EOQ for mother boards (one per computer) which have an annual holding cost of $6 per unit, and a setup/ordering cost of $75. They want to calculate total costs and the reorder point (ROP) if the purchasing lead time is 5 days. Assume 250 working days in a year.

What is the total annual cost using the EOQ ordering policy?

	a.	$1,500
	b.	$3,000
	c.	$6,000
	d.	$10,000
	e.	None of the above

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