Question: 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

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 $10 per year. The company operates 250 days per year. What is the Total Annual Cost (that is, Annual Holding Cost plus Annual Ordering Cost) if Talbot orders using the Economic Order Quantity (EOQ)?

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