Multiple Choice
A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate.The cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00.If the restaurant orders the economic order quantity then the total annual inventory cost for napkins is
A) $62,500.
B) $5,000.
C) $2,500.
D) $1,250.
Correct Answer:
Verified
Correct Answer:
Verified
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