Chapter 12, Problem 7P

William Beville’s computer training school, in Richmond, stocks workbooks with the following characteristics:

   $\begin{array}{l}\text{Demand }D\text{ = 19, 500 units/year}\\ \text{Ordering cost }S\text{ = \$25/order}\\ \text{Holding cost }H\text{ = \$4/unit/year}\end{array}$

1. a. Calculate the EOQ for the workbooks.
2. b. What are the annual holding costs for the workbooks?
3. c. What are the annual ordering costs?