An Office Supply Company Is Attempting to Determine the Order

Multiple Choice

An office supply company is attempting to determine the order quantity for laser printer toner cartridges which are sold to local businesses. Annual demand is 20,000 units and each cartridge costs the store $25. It costs $30 to place an order and the inventory carrying cost rate is 25% of the value of the item. The following spreadsheet has been set up to solve the problem. What formula goes in cell B11 in this problem? $$\begin{array} { | c | c | c | } \hline & \text { A } & \mathrm { B } \\\hline 1 & & \\\hline 2 & & \\\hline 3 & \text { Annual Demand: } & 20,000 \\\hline 4 & & \\\hline 5 & \text { Cost per Unit: } & \$ 25 \\\hline 6 & \text { Ordering Cost: } & \$ 30 \\\hline 7 & \text { Carrying Cust: } & 25 \% \\\hline 8 & & \\\hline 9 & \text { Order Quantity: } & 483.73 \\\hline 10 & & \\\hline 11 & \text { Total Cost: } & \$ 502,738.61 \\\hline\end{array}$$

A) =B3*B7+B9/B3*B6+B9*2+B5*B7
B) =B3*B5+B3/B9*B6+B9/2*B5*B7
C) =SQRT(B3*B5+B3/B9*B6+B9/2*B5*B7)
D) =B3*B3+B3/B9+B6*B9/2*B5*B7