Burgoon Uses an Economic Order Quantity Model and Has Determined

Multiple Choice

Burgoon uses an economic order quantity model and has determined an optimal order size of 500 units.Annual demand is 10,000 units,ordering costs are $50 per order,and holding costs are $4 per unit.The company's annual ordering and holding costs total:

A) $2,000.
B) $3,000.
C) $21,000.
D) $41,000.
E) some other amount.
Cartwright Graphics uses a special purpose paper on 80% of its jobs.The paper is purchased in 100-sheet packages at a cost of $100 per packagE.Management estimates that the cost of placing and receiving a typical order is $15,and the annual cost of carrying a package in inventory is $1.50.Cartwright uses 2,600 packages each year.Production is constant,and the lead time to receive an order is 1 week.