A Company Has Collected the Following Inventory Data for an Item

Multiple Choice

A company has collected the following inventory data for an item. What is the total annual cost for this item? $\begin{array}{llcc} \text { Annual demand for the item } & \text {D=500}\\ \text { Unit purchase cost for the item } &\text {C=10}\\ \text { Fixed cost of placing an order } &\text {S=20}\\ \text { Cost of holding one unit in inventory for a year } &\text {i=30\%}\\ \text { Order quantity } &\text {Q=50}\\\end{array}$

A) 275
B) 450
C) 5,275
D) 5,450