Question: In the basic EOQ model, if Demand is 3000 per month, Fixed cost is $200 per order, unit cost is $50, and holding cost per

In the basic EOQ model, if Demand is 3000 per month, Fixed cost is $200 per order, unit cost is $50, and holding cost per year as a fraction of unit cost is 5%., what is the annual fixed cost? The annual holding cost?

a) About $2,000

b) About $3,000

c) About $866

d) About $1,000

e) About $2,400

f) None of the above

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