Question
A firm uses $20,000 of an item per year. The carrying cost is 25%, the cost of ordering is $10 and the order quantity is
A firm uses $20,000 of an item per year. The carrying cost is 25%, the cost of ordering is $10 and the order
quantity is $1,000. The annual total cost of carrying plus ordering would be:
A) $500.
B) $5,000.
C) $816.
D) $2,500.
E) none of the above
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Fundamentals Of Accounting
Authors: Claudia Gilbertson
10th Edition
1111581169, 978-1111581169
