Consider a retail store that uses the EOQ model to manage its inventory of a SKU. The business setting satisfies all EOQ assumptions. The manager correctly finds EOQ=100 units and the annual total (sum of) ordering and cycle inventory holding costs to be $500 at EOQ=100. However, the store's current inventory policy specifies the order quantity of Q=120 units. Which of the following values is the closest assessment of the stores current annual total (sum of) ordering and cycle inventory holding costs at Q=120?

Group of answer choices:

$300/year

$550/year

$800/year

$1,200/year