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Baked Potatoes has total annual sales of 846,000 units, a carrying cost per unit of $1.64 per year, and restocking costs of $31 per order.
Baked Potatoes has total annual sales of 846,000 units, a carrying cost per unit of $1.64 per year, and restocking costs of $31 per order. Each inventory item has an average cost of $2.39. What is the average dollar value of the firms inventory if it always orders the most economical quantity?
$7,008
$7,409
$6,218
$6,411
$6,758
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