A small refrigeration shop stocks up on electric motors from a catalog supplier located in the Midwest. The price of the motors varies depending on the quantity purchased; the price breaks are shown in the table. The refrigeration shop knows it will need around 600 motors for the coming season and that it will cost them about $40 to place an order. The company determined that its inventory carrying cost is 20%.

-Which purchasing option should the small refrigeration shop take?
A) Option A
B) Option B
C) Option C
D) All of the options have similar total annual inventory costs.
E) Do not have enough information to answer the question
Correct Answer:
Verified
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