What would his total ordering cost be for the year

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Reference no: EM13223103

Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. If Mark orders 200 units each time he places an order, what would his total ordering cost be for the year?
A) $2,000
B) $2,720
C) $200
D) $720
E) None of the above

Reference no: EM13223103

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