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Question 22 Gamma Manufacturing requires 6,500 gadgets per year for production. The business decides to order 220 gadgets at a time. The costs of ordering

Question 22

Gamma Manufacturing requires 6,500 gadgets per year for production. The business decides to order 220 gadgets at a time. The costs of ordering are $60 per order and carrying costs per gadget are $4. Compute the carrying costs for the period between the first and second orders.

a.

$240

b.

$220

c.

$880

d.

None of the answers.

e.

$440

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