Peek, Inc. has calculated its economic order quantity at 500 units when its annual demand is 3,125

Question:

Peek, Inc. has calculated its at 500 units when its annual demand is 3,125 units. The cost to place an order is $ 10 and the cost to carry one unit in inventory is $ 0.25. What is the total ordering plus carrying cost for the year?
Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...