Question: The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemblies, the XO-01, has

The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemblies, the XO-01, has an estimated annual demand of 8,000 units. Talbot estimates the cost to place an order is $50, and the holding cost for each assembly is $20 per year. The company operates 250 days per year. Following the EOQ in the last question, what is the total inventory cost for Talbot Company?

Multiple Choice $2,000 $4,000 $5,000 $8,000 (PREVIOUS EOQ was 200)

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