The Flowering Vine buys hanging plants for $4 each and resells them for $10.95 each.The firm sells 6,200 plants per year.Generally, the firm orders 250 plants at a time and has a fixed cost per order of $49.The carrying cost per unit is $22.32.To avoid newer plants mixing with older plants, the inventory is totally sold out before it is restocked.Given the current ordering system, the total annual carrying cost is ____ and the total annual restocking cost is ____.
A) $2,811; $1,215
B) $2,811; $1,269
C) $2,790; $1,215
D) $2,790; $1,225
E) $3,212; $1,269
Correct Answer:
Verified
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