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Mark Achin sells 3 , 6 0 0 electric motors each year. The cost of these is $ 2 0 0 each, and demand is

Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. He is now considering using EOQ to make inventory ordering decisions. What would the difference in total holding cost be for the year?

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