Part 1- Inventory: You own a toy company and you are producing wooden rocking horses. Assume you have 18,000 units of demand per year. Your ordering cost would be $10 per order. Your unit cost would be $3 and your dollar carrying cost would be 8%.

1. (10 points) Basic EOQ: If your policy were to order Q=800 units when R= 0, what would your total cost be? (assume 360 days)