The ordering cost per order is Rs. 500. What is the EOQ?

Question

The monthly demand for a product is Rs. 3,000 of sales. Annual carrying cost is Rs. 2,000. The ordering cost per order is Rs. 500. What is the EOQ?

            (a) One month of sales            (b) Three months of sales

            (c) Four months of sales          (d) Six months of sales