The EOQ formula is given here: EOQ = 2 x Ordering Cost x Demand Holding Cost and Total Cost (TC)is expressed as: Tc= Demand Order Quantity x Ordering Cost + (12) x Order Quantity x Holding Cost + Total Purchase cost A Clinical laboratory uses 250 gallons of a certain solvent per year at a purchase price of $2.50 per gallon. The cost associated with placing an order is $8 and withholding stock (on an annual basis) is 20 percent of the purchase cost per unit. Assuming that the basic conditions of the EOQ model apply, compute: a) What is the most economic order quantity? b) What is the total cost