Question: Queens black is a popular input with an annual demand of 5 0 0 0 0 gallons, ordering cost of$ 5 0 per order, and

Queens black is a popular input with an annual demand of 50000 gallons, ordering cost of$50 per order, and holding cost of $5 per unit per year; the econmoic orer quantity is 1,000. Hence during the year, they used 1,000 as the order quantity. An audit of the costs revealed that the true ordering cost was only $25 and the true holding cost was $10 per gallon per year. The correct order quantity would have been 500. How much id they lose due to incorrect cost information during the year?

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