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Carmel Company Uses 810 Units of a Part Each Year

Question 2

Multiple Choice

Carmel Company uses 810 units of a part each year. The cost of placing one order is $10; the cost of carrying one unit in inventory for a year is $4.
-Refer to the Figure.Benton has decided to begin ordering 60 units at a time.What is the average annual ordering cost of Benton's new policy?


A) $60
B) $135
C) $150
D) $185

Correct Answer:

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