For a product satisfying Economic Order Quantity (EOQ) model assumptions, the annual demand is 9000 units, the purchase cost is $40/unit and the inventory holding cost per unit per year is 20% of the purchase cost. The ordering cost is $300 per order.

Question: What is the annual inventory cost if the firm uses the order quantity (size) of 1000 (units)?

		$6573
		$4000
		$7000
		$2700
		$6700
		$5700