Cycles De Oro Produces 120,000 High-Tek Bikes a Year and Orders

Multiple Choice

Cycles de Oro produces 120,000 high-tek bikes a year and orders the brake assembly from IKON for $15.40 each. The order cost is $84, and Cycles estimates its inventory carrying costs are 15%. What is its total ordering cost per year?

A) $7,968
B) $3,412
C) $4,118
D) $6,437