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.

The purchasing manager decides$$ that, in order to save purchasing$$ time, orders for the A$1$ chip will be placed once every month. How much does this approach cost the Universal Computer Company in total annual holding and ordering costs$($instead of ordering using the EOQ$$ quantity$)?$

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Part $1$

A$.$

less than or equal to$$ $$10,000$

B$.$

greater than$$ $$15,000$ but less than or equal to$$ $$20,000$

C$.$

greater than$$ $$20,000$

D$.$

greater than$$ $$10,000$ but less than or equal to$$ $$15,000$