Here are facts about inventory costs for Hidden Peepers, a company that sells ‘‘fashion’’ sunglasses in malls and airports:
Differential Costs per Order ........................................................................... $50
Total Units Purchased per Year ....................................................... 80,000 Units
Differential Carrying Costs per Unit of Inventory ............................. $4 per Unit
Prepare a table like Exhibit 7.14. Find the costs of ordering and carrying inventory for each of the following number of orders per year: 40 orders, 50 orders, 60 orders.