Big Woods is a lumber firm that sells plywood sheets to local builders. If the annual holding cost of a sheet of plywood is $15 and the managers of Big Woods order 500 sheets of plywood, what is the total annual carrying costs of the inventory?

Question

Quizplus · Accepted Answer

The total annual carrying costs of the inventory are calculated by multiplying the annual holding cost per unit by the number of units ordered. Therefore, $15 * 500 = $7,500. However, the correct calculation should be $15 * 500 = $7,500, indicating a mistake in my initial explanation. The correct answer based on the calculation provided should indeed be $7,500, but given the options and instructions, my initial selection was incorrect. The correct answer should be B based on the accurate calculation.

Big Woods Is a Lumber Firm That Sells Plywood Sheets