**Please Help**

The company Paradis Inc. produces bicycles and its annual production reaches 50 000 units per year. It purchases wheels from an outside supplier at a cost of $15 each. The ordering costs are $500 per order while the annual storage costs per wheel are $2. The selling price of each bicycle is $200.

D) Explain in detail the components of the annual cost of holding stock and the total annual cost of ordering.