Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 21

The EOQ for Part B-22 is 2,500 units, and four orders are placed each year. The total annual ordering cost is $1,200. Which of the following is true
A) The cost of placing one order is $4,800.
B) The annual demand for the part is 2,500 units.
C) The cost of placing one order is $1,200.
D) The total carrying cost is $1,200.
E) It is impossible to calculate the annual carrying cost given the above information.