Refer to Hunter Corporation.What are Hunter Corp.'s total annual ordering costs for Material A?

Question

Quizplus · Accepted Answer

To calculate the total annual ordering cost, we need to divide the annual demand (500) by the order quantity (100) to determine the number of orders placed per year (5). Then, we need to multiply this by the cost of placing each order ($25). 
So, the total annual ordering cost for Material A is:
5 x $25 = $125