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

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

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