What is johnson product''s annual holding costs

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Reference no: EM1383645

Johnson Product's places an order for inventory 4 times a year, at a reordering cost of $1000 per order. The cost of carrying inventory is 20% per year. What is Johnson Product's annual holding costs assuming Johnson uses the EOQ?

A. $1,000 @EOQ
B. $4,000@EOQ
C. $7,500 @EOQ
D. $8,500@EOQ

Reference no: EM1383645

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