Gartner Manufacturing Inc

Multiple Choice

Gartner Manufacturing Inc. purchases a component from a Malaysian supplier. The demand for that component is exactly 70 units each day. The company is open for business 250 days each year. When the company reorders the product, the lead time from the supplier is exactly 10 days. The product costs $14.00. The company determined that its inventory carrying cost is 20%. The company's order cost is $30.00.
-What is the annual inventory carrying cost?

A) $970
B) $900
C) $939
D) $857
E) $1,036