Use This Information to Answer the Following Questions

Multiple Choice

Use this information to answer the following questions.
A cake factory can produce cakes at the rate of 500 per day.The factory supplies its cakes to local grocery stores at a rate of 250 per day.The cost to prepare the equipment for producing the cakes is $20.Annual holding costs are $2 per cake.Assume that the factory operates 250 days a year.
-Refer to the information above.What is the optimal EPQ?

A) 1389
B) 1425.68
C) 1250.27
D) 1000
E) 1581.14