Fred currently orders once a month for a part that has an annual dema of $36,000,$ a holding cost of $$\mathrm{.}75$ per unit per year and an ordering cost $$5.$ Assuming that EOQ provides a better ordering strategy, which statement is true:

Fred's cost of ordering is too high and his cot holding is too low

Fred's cost of ordering is too low and his cost of holding is too high