Specialty Manufacturing Requires 5400 Gadgets Per Year for Production

question 46

Multiple Choice

Specialty Manufacturing requires 5400 gadgets per year for production. The firm decides to order 120 gadgets at a time. The costs of ordering are $50 per order and carrying costs per gadget are $2. The annual cost of the inventory policy is:

• A) $2370.
• B) $1365.
• C) $1584.
• D) $2490.