The Manager of the Quick Stop Corner Convenience Store (Which

Multiple Choice

The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day.Order costs are $20.00 per order,and Stein beer costs $8.00 per six-pack (each case of Stein beer contains four six-packs) .Orders arrive three days from the time they are placed.Daily holding costs are equal to five percent of the cost of a Stein beer case. If he has to order 16 cases of Stein beer at a time,what would be the daily total inventory costs,EXCLUDING the cost of the beer?

A) $3.20
B) $6.40
C) $9.60
D) $12.80
E) $16.00