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 carrying costs using the EOQ?
A) $45
B) $90
C) $164
D) $300
E) $390

Question

Quizplus · Accepted Answer

The EOQ is 3,600 units, so the total carrying costs are $164.

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