Quidi Vidi Co. has 325 motors in its inventory at the start of the week. It will use all of these in its weekly production runs and then resupply its inventory for the next week. The carrying cost per motor is $84.26. The fixed cost per order is $63. The variable cost per motor is $122.

What is the total carrying cost of the motor inventory?
A) $6,133
B) $13,692
C) $19,825
D) $27,385
E) $33,157

Question

Quidi Vidi Co. has 325 motors in its inventory at the start of the week. It will use all of these in its weekly production runs and then resupply its inventory for the next week. The carrying cost per motor is $84.26. The fixed cost per order is $63. The variable cost per motor is $122.

What is the total carrying cost of the motor inventory?

What is the total carrying cost of the motor inventory?
A) $6,133
B) $13,692
C) $19,825
D) $27,385
E) $33,157

Quizplus · Accepted Answer

The total carrying cost of the motor inventory is calculated by multiplying the carrying cost per motor by the number of motors in inventory. Therefore, $84.26 * 325 = $27,384.50, which rounds to $27,385, corresponding to option D.