The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost? / high volume? assemblies, the XOminus−?01, has an estimated annual demand of? 8,000 units. Talbot 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. Use the information in the scenario above. The purchasing manager decides? that, in order to save purchasing? time, orders for the XOminus−01 will be placed every three? months, or four times per year. How much does this approach cost Talbot in total annual holding and ordering costs? (instead of Talbot ordering using the EOQ? quantity)?
A. Greater than? $14,000 but less than or equal to? $18,000
B. Greater than? $10,000 but less than or equal to? $14,000
C. Greater than? $18,000
D. Less than or equal to? $10,000