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Kromberg uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemblies, the YY-22, has an estimated annual demand of 8,000 units. Kromberg estimates the cost to place an order is $50, and the holding cost for each assembly is $20 per year. The company operates 250 days per year. What are the total annual holding and ordering costs if Kromberg orders using the EOQ quantity?

Greater than $2,500 but less than or equal to $5,000

Greater than $7,000

Greater than $5,000 but less than or equal to $7,000

100%

Less than or equal to $2,500

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