The following information are given:

Optimal production run in units - 2,000

Average inventory in units - 1,000

Number of productions runs - 5

Cost per unit production - 75

Desired annual return on inventory investment - 18%

Set-up cost per productions run - 5,000

If the units will be required evenly throughout the year, the total annual relevant costs using the economic order quantity approach is:

a. 5,000

b. 38,500

c. 50,000

d. 75,000