Scenario $12\mathrm{.}1$

The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost $/$ high volume assemblies, the XO$-01,$ has an estimated annual demand of $8,000$ units. Talbot estimates the cost to place an order is $$50,$ and the holding cost for each assembly is $$20$ per year. The company operates $250$ days per year.

Use the information in Scenario $12\mathrm{.}1.$ What are the annual inventory holding costs if Talbot orders using the EOQ quantity?

Less than or equal to $$1,500$

Greater than $$1,500$ but less than or equal to $$4,000$

Greater than $$4,000$ but less than or equal to $$6,500$

Greater than $$6,500$