The Universal Computer Company uses a newly developed A$1$ chip in the manufacturer of their tablet computers. The estimated annual demand for this chip is$12,000$ units. It is estimated that the cost to place an order is$$ $$75,$ and the holding cost for each chip is$$ $$20$ per year. The company operates $320$ days per year.

What is the total annual holding and ordering costs if the Universal Computer Company orders using the EOQ$$ quantity?

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Part $1$

A$.$

greater than$$ $$7,000$

B$.$

greater than$$ $$5,000$ but less than or equal to$$ $$7,000$

C$.$

less than or equal to$$ $$3,000$

D$.$

greater than$$ $$3000$ but less than or equal to$$ $$5,000$