On an annual requirement of 100 items spread evenly throughout the year, any purchaser has an opportunity of buying all 100 units at a price of $100 each, or buying 10 units at a time at a price of $120. If the inventory carrying cost is 25 percent per year and assuming no ordering costs:
A) buying 100 at a time will save the company $2,500 per year.
B) buying 100 at a time will save the company $2,000 per year.
C) buying 100 at a time will save the company $1,100 a year.
D) buying 100 at a time will save the company $900 per year.
E) buying 100 at a time will save the company $200 a year.

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The Answer of On an annual requirement of 100 items spread evenly throughout the year, any purchaser has an opportunity of buying all 100 units at a price of $100 each, or buying 10 units at a time at a price of $120. If the inventory carrying cost is 25 percent per year and assuming no ordering costs:
A) buying 100 at a time will save the company $2,500 per year.
B) buying 100 at a time will save the company $2,000 per year.
C) buying 100 at a time will save the company $1,100 a year.
D) buying 100 at a time will save the company $900 per year.
E) buying 100 at a time will save the company $200 a year.

On an Annual Requirement of 100 Items Spread Evenly Throughout