A book shop sells 30,000 pens per year. Considering that the demand is uniform, purchase cost is ₹6 per pen. Holding cost per annum is 20% of purchase cost. Ordering cost is ₹500 per order. Calculate the inventory holding cost?

1.4 1.5 1.2 1.3

1.2

The correct answer is option (3) - 1.2