Cindy's Toys has an average inventory of 1,800 teething rings. The carrying cost per unit per year is 5'. Cindy places an order for 3,600 teething rings on the first of each month and the order cost is $25. What are the total restocking costs under the current system?
A) $45
B) $90
C) $150
D) $164
E) $300

Question

Quizplus · Accepted Answer

The total restocking costs under the current system can be calculated by multiplying the order cost by the number of orders placed in a year. Since Cindy places an order on the first of each month, there are 12 orders in a year. Therefore, the total restocking costs are $25 (order cost) * 12 (orders per year) = $300.

Cindy's Toys Has an Average Inventory of 1,800 Teething Rings