Ace Hardware's Economic Order Quantity (EOQ) Is 100 Widgets, Its

Multiple Choice

Ace Hardware's economic order quantity (EOQ) is 100 widgets, its total demand is 20,000 units per period, its carrying cost per unit is 20% of inventory value, its purchase price $4, and its fixed costs per order is $20. Which of the following is the total inventory cost of Ace?

A) $1,250
B) $3,250
C) $1,750
D) $2,000
E) $4,040