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Novelty Gifts Inc. is experiencing some inventory control problems. The manager, Wanda LaRue, currently orders 10,000 units four times a year to handle the annual

Novelty Gifts Inc. is experiencing some inventory control problems. The manager, Wanda LaRue, currently orders 10,000 units four times a year to handle the annual demand of 40,000 units. Each order costs $15 to process and each unit costs $1.50 to carry in inventory. Ms. LaRue maintains a safety stock of 200 units. What is their current total annual inventory cost?

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