ABC company is attempting to minimize total inventory cost. The cost of each unit is $2. The cost of capital is 15% and the physical cost of...
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ABC company is attempting to minimize total inventory cost. The cost of each unit is​ $2.25. The cost of capital

is​ 15% and the physical cost of maintaining this inventory is currently running at​ 7%. The purchasing officer can place an order in 25 minutes with materials and overhead cost of​ $7.50 per order. The purchase officer is currently paid​ $18.00 per hour. Records​ show, average weekly sales to be​ 12,000 units. ​ What is the minimum​ TIC?

A.

​$2984

B.

​$3044

C.

​$3004

D.

​$3024

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