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Specialty Manufacturing Requires 5400 Gadgets Per Year for Production

Question 46

Multiple Choice

Specialty Manufacturing requires 5400 gadgets per year for production. The firm decides to order 120 gadgets at a time. The costs of ordering are $50 per order and carrying costs per gadget are $2. The annual cost of the inventory policy is:


A) $2370.
B) $1365.
C) $1584.
D) $2490.

Correct Answer:

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