The Wood Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items:

Relevant ordering costs per purchase order $300

Relevant carrying costs per year:

Required annual return on investment 10%

Required other costs per year $2.80

Annual demand is 20,000 packages per year. The purchase price per package is $32.

What is the economic order quantity?

789 units

1,429 units

1,356 units

1,415 units

What is the minimum feasible total cost of inventory?

$7,414

$8,490

$6,243

$8487