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A bakery buys sugar in 1 5 - pound bags. The bakery uses 5 0 0 0 bags of sugar each year. Carrying costs are

A bakery buys sugar in 15-pound bags. The bakery uses 5000 bags of sugar each year. Carrying costs are $20 per bag per year. Ordering costs are estimated at $5 per order. Assume that the bakery is open 250 days a year and its daily demand is estimated at 20 bags. It takes 5 days for each order of sugar to be filled.
Refer to the information above. What is the optimal EOQ?
A)200 bags
B)5000 bags
C)500 bags
D)100 bags
E)50 bags
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