You work for a retaller that sells computer games. One of those games is Quex. Answer the following questions using this information:

Arinual demand is $3,000$ games

Ordering cost is $$50$ each time an order is placed

Inventory holding$/$carrying cost is $20\%$ of the item purchase cost

Purchase cost is $$20$ per game

You are currently ordering $1000$ games each time you place an order. What is the total annual cost? What are the ordering costs? What are the holding$/$carrying costs?

$$6,050,$$$50,$$$6,000$

$$2,150,$$$150,$$$2,000$

$$1,100,$$$500,$$$600$

$$250,$$$150,$$$100$