A firm consumes 90,000 units of a certain item of raw material in its production process annually. It costs Rs. 3 per unit, the cost per purchase order is Rs. 300 and the inventory carrying cost is 20% per year. What is the EOQ?

A. 9470 units

B. 9487 units

C. 9480 units

D. 9840 units

Answer: Option B