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 total annual inventory cost?

A) $2,476
B) $2,465
C) $2,337
D) $2,512
E) $2,474