A Company Is Planning for Its Financing Needs and Uses

Multiple Choice

A company is planning for its financing needs and uses the basic fixed-order-quantity inventory model. Which of the following is the total cost (TC) of the inventory given an annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an EOQ of 400 units, and a cost per unit of inventory of $150?

A) $1,501,600
B) $1,498,200
C) $500,687
D) $499,313
E) None of these choices are correct