For a Certain Item, the Cost-Minimizing Order Quantity Obtained with the Basic

Multiple Choice

For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model was 200 units and the total annual inventory (carrying and setup) cost was $600. The inventory carrying cost per unit per year for this item is

A) $1.50
B) $2.00
C) $3.00
D) $150.00
E) not enough data to determine