The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from their supplier costs $25 regardless of order quantity, so they usually place a large order (a half year's supply)at a time. It costs $5 per year to hold a cap and gown in inventory, primarily insurance costs for the highly flammable material. What is the total cost if they order at their optimal order quantity?
A)$1,650
B)$1,500
C)$1,000
D)$2,000

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The Answer of The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from their supplier costs $25 regardless of order quantity, so they usually place a large order (a half year's supply)at a time. It costs $5 per year to hold a cap and gown in inventory, primarily insurance costs for the highly flammable material. What is the total cost if they order at their optimal order quantity?
A)$1,650
B)$1,500
C)$1,000
D)$2,000

The Campus Bookstore Sells 4,000 Sets of Graduation Regalia Each