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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 firm's inventory if it always orders the most economical quantity?=
A) $6,758
B) $7,008
C) $7,409
D) $6,218
E) $6,411
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