Lisa Surowsky was asked to help in determining the bestordering policy for a new product. Currently, the demand forthe new product has been projected to be about 1,000 unitsannually. To get a handle on the carrying and ordering costs,Lisa prepared a series of average inventory costs. Lisathought that these costs would be appropriate for the newproduct. The results are summarized in the followingtable. These data were compiled for 10,000 inventory itemsthat were carried or held during the year and were ordered 100times during the past year. Help Lisa determine theEOQ.

CostFactor Cost($)

Taxes 2,000

Processing andInspection 1,500

New productdevelopment 2,500

Billpaying 500

Orderingsupplies 50

Inventoryinsurance 600

Productadvertising 800

Spoilage 750

Sending purchasingorders 800

Inventoryinquiries 450

Warehousesupplies 280

Research anddevelopment 2,750

Purchasesalaries 3,000

Warehousesalaries 2,800

Inventorytheft 800

Purchase ordersupplies 500

Inventoryobsolescence 300

I do not understand how to find the EOQ in this problem withthe figures given. Can you help me find the EOQ.