Annual usage is 6000 units @ Rs 20 per unit Cost of placing an order is Rs 60 and annual carrying cost of one unit is 10% of inventory value EOQ = __________.

The correct answer is C. 1200 units.

The economic order quantity (EOQ) is the optimal quantity of an item to order at a time in order to minimize the total inventory costs. It is calculated by the following formula:

EOQ = √(2DC)/H

where:

• D = annual demand in units
• C = cost of placing an order
• H = annual carrying cost per unit

In this case, we have:

• D = 6000 units
• C = 60
• H = 0.1*20 = 2

Substituting these values into the formula, we get:

EOQ = √(2600060)/2 = 1200 units

The other options are incorrect because they do not minimize the total inventory costs. For example, option A (600 units) would result in higher ordering costs, while option B (750 units) would result in higher carrying costs.