Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,800 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $7 per unit of average inventory. Every time an order is placed for more of item X, it costs \$18. Question 28 (1 point) Whenever item X is ordered, what should the order size be? 110 120 150 140 100 What is the annual cost of ordering item X ? 330 430 420 210 630 What is the annual cost of holding item X ? 420 630 210 330 430
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