Think of this first practice problem as a warm up. We have found over the years that many students make mistakes on the simple concepts (converting to common units, translating times from months to years, etc.). So, let's make sure we are all comfortable with these basic ideas before moving on to the more complicated concepts. So, for this problem it is all about the basics, with no trouble (I hope). Part 3 O points possible (ungraded) You have been asked to calculate the economic order quantity Q* for a product that has an expected demand of 240 units per month. The cost per unit is $50, and the holding charge is 12% of the item's cost per year. Placing an order has a cost of $100. Assuming there are 12 months in a year, what is the monthly holding charge? Assume the charge is simple (not compound). Give your answer in decimal form, e.g. for 5%, say 0.05