A Restaurant Currently Uses 62,500 Boxes of Napkins Each Year

question 38

Multiple Choice

A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate.The cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00.If the restaurant orders the economic order quantity then the total annual inventory cost for napkins is

• A)$62,500.
• B)$5,000.
• C)$2,500.
• D)$1,250.

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