Refer to the equation for the EOQ in the text.

Car Country, a local Ford dealer, sells 1,280 small SUVs each year. Keeping a car on the lot costs Car Country $200 per month, so the company prefers to order as few SUVs as is economically feasible. However, each time an order is placed, the company incurs total costs of $300—$240 of which is fixed and $60 is variable. Determine the company’s EOQ.

a. 8

b. 16

c. 18

d. 56

e. 62