Solved

On an Annual Requirement of 100 Items Spread Evenly Throughout

Question 28

Multiple Choice

On an annual requirement of 100 items spread evenly throughout the year,a purchaser has an opportunity of buying all 100 units at a price of $100 each,or buying 10 units at a time at a price of $130.If the inventory carrying cost is 20 percent per year and assuming no ordering costs:


A) buying 100 at a time will save the company $2,130 per year.
B) buying 100 at a time will save the company $2,260 per year.
C) buying 100 at a time will save the company $3,000 per year.
D) buying 10 at a time will save the company $1,000 per year.
E) buying 10 at a time will save the company $870 per year.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions