Ordering Cost, Carrying Cost, and Total Inventory-Related Cost

Zellen Company purchases 10,000 units of Product Beta each year in lots of 700 units per order. The cost of placing one order is $6, and the cost of carrying one unit of product in inventory for a year is $1.10.

Required:

1.How many orders for Beta does Zellen place per year? Round your answer to the nearest whole number of orders, if rounding is required.

_____________orders

2.What is the total ordering cost of Beta per year? Round your answer to the nearest dollar.

$____________

3.What is the total carrying cost of Beta per year? Round your answer to the nearest dollar.

$_______________

4.What is the total cost of Zellen's inventory policy for Beta per year? Round your answer to the nearest dollar.

$________________