Big Woods is a lumber firm that sells plywood sheets to local builders. If the annual holding cost of a sheet of plywood is $6 and the managers of Big Woods order 1,000 sheets of plywood, what is the total annual carrying costs of the inventory?

Question

Quizplus · Accepted Answer

Total annual carrying costs = (annual holding cost per unit) x (number of units)
= $6 x 1,000 = $6,000. 
Therefore, the correct answer is option C.

Big Woods Is a Lumber Firm That Sells Plywood Sheets