Question: Consider the following data for a shop. Annual demand = 40000 units; Unit cost = $25 each; Carrying charge = 10% per year; Ordering cost

Consider the following data for a shop. Annual demand = 40000 units; Unit cost = $25 each; Carrying charge = 10% per year; Ordering cost = $20 per order. The EOQ is:

A. 200 units
B. 219 units
C. 400 units
D. 800 units

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