If Annual Demand Is 48,000 Units, Orders Are Placed in Quantities

question 128

Multiple Choice

If annual demand is 48,000 units, orders are placed in quantities of 2000 units at a time, and the cost to place an order is $80, what is the annual ordering cost?

• A) $1,920
• B) $3,840,000
• C) $160,000
• D) $80
• E) $4,160

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