Micro-Encapsulator Corp. (MEC) expects to sell 2,000 miniature home encapsulators this year. The cost of placing an order from its supplier is $450. Each unit costs $100.00 and carrying costs are 20% of the purchase price.

a. What is the economic order quantity? (Round your answer to the nearest whole value.)

EOQ

units

b. What are total costs order costs plus carrying costs of inventory over the course of the year? (Round your answer to the nearest whole dollar.)

Total costs of inventory

$