The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant througout the year. The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. Currently, the purchase cost is $40 per unit. There are 250 workin days per year. Whenever an is placed, it is known that the entire order will arrive on a truck in 6 days. Currently, the company is ordering 500 units each time an order is placed. What is the total holding cost for the year using this policy?
A.$400
B.$2,000
C.$4,000
D.$8,000
E. none of above