A company uses the Economic Order Quantity (EOQ) model to establish reorder quantities. The following information relates to the forthcoming period:Order costs = $25 per orderHolding costs = 10% of purchase price = $4/unitAnnual demand = 20,000 unitsPurchase price = $40 per unitEOQ = 500 unitsNo safety stocks are held.What are the total annual costs of stock (i.e. the total purchase cost plus total order cost plus total holding cost)?
A. $22,000
B. $33,500
C. $802,000
D. $803,000