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?

Question

Quizplus · Accepted Answer

The total carrying cost is calculated by multiplying the number of motors (325) by the carrying cost per motor ($84.26), which equals $27,384.50. However, since this is not an option, the closest correct option is $13,692, which might be a mistake in the problem or options.