A company has collected the following inventory data for an item. What is the total annual cost for this item?

Annual demand for the item D = 500

Unit purchase cost for the item C = 10

Fixed cost of placing an order S = 20

Cost of holding one unit in inventory for a year i = 30%

Order quantity Q = 50

a. 275

b. 450

c. 5,275

d. 5,450