Question: Question (3): Answer the following problem: (14 marks) Custom computers, Inc. assembles custom home computers systems. The heat sinks needed are ordered in quantities of

Question (3): Answer the following problem: (14 marks)

Custom computers, Inc. assembles custom home computers systems. The heat sinks needed are ordered in quantities of 1300 units. Annual demand is 5200 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $50. Calculate:

Economic order quantity (7 marks)
The total annual cost (7 marks)

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