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 has determined its annual inventory carrying cost is $2,000.Alpha carries no safety stock at all.What is Alpha's order cost per order?

A) Cannot be determined without further information
B) $2,000
C) $200
D) $1,500