Methawks Corporation Has the Following Information

Multiple Choice

Methawks Corporation has the following information:
Average demand = 30 units per day
Average lead time = 40 days
Item cost = $45
Ordering cost = $50
Inventory carrying cost = 15%
The business year is 300 days.
-What is the annual inventory carrying cost?

A) $1,343
B) $1,357
C) $969
D) $1,012
E) $1,232