Product Y has a value of $100 and a holding cost rate of 10% per year. The ordering costs are $1,000, and the yearly demand is 45,000 units. The economic order quantity can be determined to equal 3,000 (feel free to check this). Determine the total inventory costs (i. e., ordering costs + holding costs) per year.

$30,000

Explanation:

Use the following formula to calculate the total cost

Total cost = ordering costs + holding costs

Where

Ordering costs = Numbers of orders placed per year x Ordering Cost per order = ( 45,000 units / 3,000 units per order ) x $1,000 per order = 15 x $1,000 = $15,000

Holding costs = Average Inventory x Holding cost per unit per year = ( 3,000 units / 2 ) x ( $100 x 10% ) = 1,500 units x $10 = $15,000

Placing values in the formula

Total Cost = $15,000 + $15,000

Total Cost = $30,000

answer; i believe the correct answer is energy star;

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order: