Pon Factory uses 2,400 units of a product per year on a continuous basis. The product carrying costs are $60 per year and ordering costs are $250 per order. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory. Calculate the total cost per year to order and carry this item. Group of answer choices

Please explain

Options

$8,661

$8,485

$8,309

Cannot be determined