Question: Custom Computers Inc. assembles custom home computer systems. The heat sinks needed are bought for $ 1 2 each and are ordered in quantities of

Custom Computers Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,270 units. Annual demand is 5,080 heat sinks, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be $50.
Custom Computers is considering a new ordering policy. The new order quantity would be 980 heat sinks.
Calculate the following for new order quantity. (a) Average inventory level _____ units. (b) The number of orders placed per year _____ orders (round answer to 2 decimal places)(c) The total annual inventory holding cost $ ______(d) The total annual ordering cost $ ______(round answer to 2 decimal places)(e) The total annual cost (not including the cost of the sinks) $ _____(Round your answer to 2 decimal places)

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