Figure 8-3. Martin Company uses 625 units of a part each year.The cost of placing one order is $8; the cost of carrying one unit in inventory for a year is $4.
Refer to Figure 8-3.Martin has decided to begin ordering 40 units at a time.What is the average annual ordering cost of Martin's new policy?
A)$190
B)$150
C)$125
D)$100
E)$145

Question

Quizplus · Accepted Answer

The Answer of Figure 8-3. Martin Company uses 625 units of a part each year.The cost of placing one order is $8; the cost of carrying one unit in inventory for a year is $4.
Refer to Figure 8-3.Martin has decided to begin ordering 40 units at a time.What is the average annual ordering cost of Martin's new policy?
A)$190
B)$150
C)$125
D)$100
E)$145