Question $21$

The Universal Computer Company uses a newly developed A$1$ chip in the manufacturer of their tablet computers. The estimated annual demand for this chip is $12,000$ units. It is estimated that the cost to place an order is $$50,$ and the holding cost for each chip is $$20$ per year. The company operates $320$ days per year.

Use the information. What is the total annual holding and ordering costs if the Universal Computer Company orders using the EOQ quantity?

Question $21$ options:

A$)$ greater than $$5,000$ but less than or equal to $$7,000$

B$)$ greater than $$11,000$

C$)$ less than or equal to $$3,000$

D$)$ greater than $$3000$ but less than or equal to $$5,000$

E$)$ greater than $$7,000$ but less than or equal to $$9,000$

F$)$ greater than $$9,000$ but less than or equal to $$11,000$