Alpha Company Places 10 Orders Per Year with Its Supplier

Multiple Choice

Alpha Company places 10 orders per year with its supplier.Each order is for an amount exactly equal to the EOQ.Alpha's order cost has been determined to be $50 per order.Alpha carries no safety stock at all.What is Alpha's annual inventory carrying cost?

A) Cannot be determined without further information
B) $50
C) $250
D) $500