Question: Annual demand for a computer is 10,000 units. Each computer costs $1,000. The annual holding (carrying) cost rate is 25%. The ordering cost is $150

Annual demand for a computer is 10,000 units. Each computer costs $1,000. The annual holding (carrying) cost rate is 25%. The ordering cost is $150 per order. For an order quantity of 110 computers, what is the annual holding cost? Select the closest number.

$2062.50

$10,975

$560

$13,750

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