16. A company orders 6,225 units per order. Each unit costs £8 to purchase and the cost of holding one unit for one year is 5% of the purchase price. The cost of placing each order is £240 and annual...

16. A company orders 6,225 units per order. Each unit costs £8 to purchase and

the cost of holding one unit for one year is 5% of the purchase price. The cost of

placing each order is £240 and annual demand is 30,000 units.

The economic order quantity (EOQ) is?

a) 6,000 units

b) 4,360 units

c) 5,450 units

d) 8,486 units