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A specialty auto parts store has set up a standing order from one of their suppliers for 5 , 0 0 0 specialty mufflers the

A specialty auto parts store has set up a standing order from one of their suppliers for 5,000 specialty mufflers the 5th day of each month. The unit value is $300. They annual carrying cost factor is 12%. They have an ordering cost of $250. If their annual demand is 60,000 mufflers, how much could they save annually by switching to their economic order quantity (rounded to nearest $100)?
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$30,500
$60,100
$73,600
$32,900

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