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Baked Potatoes Has Total Annual Sales of 846,000 Units,a Carrying

Question 59

Multiple Choice

Baked Potatoes has total annual sales of 846,000 units,a carrying cost per unit of $1.64 per year,and restocking costs of $31 per order.Each inventory item has an average cost of $2.39.What is the average dollar value of the firm's inventory if it always orders the most economical quantity?


A) $6,758
B) $7,008
C) $7,409
D) $6,218
E) $6,411

Correct Answer:

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