Scenario 9.2 The Burdell Company Is a Small Manufacturing Company That Uses

Scenario 9.2
The Burdell Company is a small manufacturing company that uses gear assemblies to produce four different models of mountain bikes.One of these gear assemblies,the "Smooth Shifter",is used for the two most expensive of Burdell's four models,and has an estimated annual demand of 300 units.Burdell estimates the cost to place an order is $40,and the holding cost for each assembly is $60 per year.The company operates 250 days per year.
-Use the information in Scenario 9.2.What are the annual inventory holding costs if Burdell orders using the EOQ quantity?

A) less than or equal to $300
B) greater than $300 but less than or equal to $500
C) greater than $500 but less than or equal to $700
D) greater than $700