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Company A purchases cases of fertilizer for its lawn care business from a supplier who charges Company A $30 per order and $50 per case.
Company A purchases cases of fertilizer for its lawn care business from a supplier who charges Company A $30 per order and $50 per case. Each case consists of five bags of fertilizer. Company A needs 2,000 bags of fertilizer a year. Company As annual holding costs are 30%. If Company A only has room to hold 30 cases of fertilizer, what would be the annual ordering and holding costs per case of fertilizer
$5.57
$0.64
$1.56
$1.11
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