The following information are given:

Optimal production run in units = 2,000

Average inventory in units= 1,000

Number of production runs= 5

cost per unit production = P75

Desired annual return on inventory investment= 18%

set up cost per production run= P5,000

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

a. P5,000

b.P75,000

c. P38,500

d. P50,000