Question: JoeFit, Inc. is using the basic FOQ model to manage its inventory for K 2 microprocessors. The setup cost per order is $ 2 0

JoeFit, Inc. is using the basic FOQ model to manage its inventory for K2 microprocessors. The setup cost per order is $200 and the inventory carrying cost is $0.05 per chip per year. Suppose the company is placing the optimal order quantity in each order and the resulting combined annual setup plus carrying costs are $32,000. What is the annual demand of the K2 microprocessors?
51.2 million units
10.24 million units
5.12 million units
102.4 million units
None of the above

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