LLB Sells 86,500 Units a Year

question 119

Multiple Choice

L.L.B. sells 86,500 units a year. The average order is for 6,000 units. Each new order arrives just as the old order is being depleted. The company does not hold any safety stock. Each order incurs a
fixed cost of $48. The carrying cost of inventory is $2.21 per unit per year. What is the total cost of
Inventory for one year?

• A) $7,239
• B) $7,322
• C) $9,108
• D) $13,952
• E) $14,021

---

Definitions:

Questionnaires

A set of questions designed for gathering information from respondents, for research or assessment purposes.

Web Searching Tools

Software applications or online services that help users find information on the internet through keywords or phrases.

Electronic Personal Agents

Software programs designed to assist users in completing tasks, managing schedules, or providing information through user interactions.

Authentic Data

Genuine, accurate, and reliable information that has not been altered or manipulated.