The Canine Kennel Uses 600 Cases of Dog Food Annually

question 24

Multiple Choice

The Canine Kennel uses 600 cases of dog food annually and orders 40 cases in each shipment.If the annual carrying cost per case (due to opportunity costs and extremely large dogs) is $5, what is the total annual carrying cost for dog food?

• A)$100
• B)$196
• C)$200
• D)$250 Total carrying costs:
• = carrying cost per case x average inventory of cases
• = $5 x (40/2)

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Definitions:

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