Big Budget Co. has the following data:

Annual inventory demand is 90,000 units.

Cost of ordering (including clerical costs, receiving and inspecting costs) is $75.

Annual holding costs for inventory are $6 per unit.

Cost of inventory is $10 per unit.

The business currently has a reorder quantity of 9,000 units per order. If the EOQ model is used, the amount saved will be:

Select one:

a.$9,000

b.$27,750

c.$18,750

d.$12,750