Sisler's sells 382,000 units a year and orders 10,000 units at a time.The cost of placing an order is $24.90.What is the firm's annual total restocking cost?
A)$909.09
B)$984.23
C)$951.18
D)$1,023.02
E)$811.19

Question

Quizplus · Accepted Answer

First, we need to calculate the number of orders placed in a year:

Number of orders = (Annual demand) / (Order quantity) = 382,000 / 10,000 = 38.2 orders per year

Next, we can calculate the annual total restocking cost:

Total restocking cost = (Number of orders) x (Cost per order) = 38.2 x $24.90 = $951.18

Therefore, the answer is C.

Sisler's Sells 382,000 Units a Year and Orders 10,000 Units