Shulman Company produces a number of products and provides the following information: Annual demand for Product C

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Shulman Company produces a number of products and provides the following information:

    Annual demand for Product C                                     20,000
    Cost of setting up to make Product C                              $45
    Cost of carrying one unit of Product C in inventory           $5

Currently, Shulman produces 1,000 units of Product C per production run. Inventory-related cost for Product C under the current inventory policy is
  a.  $900.
  b.  $2,500.
  c.  $45,000.
  d.  $3,400.
  e.  $100,000.

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