Question: Ace Hardware's economic ordering quantity (EOQ) is 1,000 widgets, its total demand is 20,000 units per period, its carrying costs per unit are 20 percent

Ace Hardware's economic ordering quantity (EOQ) is 1,000 widgets, its total demand is 20,000 units per period, its carrying costs per unit are 20 percent of the inventory value, each inventory item costs $4 to purchase, and it costs $20 each time inventory is order. What is Ace's total inventory costs if it orders the EOQ amount?

a. $16,400

b. $1,200

c. $800

d. $1,000

e. $8,400

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