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Gateway Company has determined annual demand for its rollerblades is 4 , 0 0 0 units.The cost of each rollerblade is $ 8 0 ,

Gateway Company has determined annual demand for its rollerblades is 4,000 units.The cost of each rollerblade is $80, and the inventory carrying cost is estimated to be 10% of the cost of each rollerblade. Gateway Company has determined that the average ordering cost is $10 perorder. Furthermore, it takes about two weeks for an order to arrive from the supplier, and during this time, the demand per week for rollerblades is approximately 40 units.

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