Perry Co$.$ predicts it will use $25,000$ units of material during theyear. The expected daily usage is $200$ units, and there is anexpected lead time of five days and a desired safety stock of$500$ units. The material is expected to cost $$5$ per unit. Perry antici$-$pates it will cost $$50$ to place each order. The annual carrying costis $$\mathrm{.}10$ per unit.

Compute the order point$\mathrm{.}2.$ Determine the most economical order quantity by use of theEOQ formula And Calculate the total cost

of ordering and carrying at the EOQpoint combined.

Answer is not $$500,$ or $$775.$