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What the amount saved will be

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Big Budget Co. has the following data:

Annual inventory demand is 90,000 units.

Cost of ordering (including clerical costs, receiving and inspecting costs) is $75.

Annual holding costs for inventory are $6 per unit.

Cost of inventory is $10 per unit.

Problem 1: The business currently has a reorder quantity of 9,000 units per order. If the EOQ model is used, the amount saved will be:

Select one:

a. $9,000

b. $27,750

c. $18,750

d. $12,750

Reference no: EM132804284

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