Question: What is the answer? Problem 20-21 (Algo) Item X is a standard item stocked in a company's inventory of component parts. Each year the firm,

What is the answer? What is the answer? Problem 20-21 (Algo) Item X

Problem 20-21 (Algo) Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 1,600 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $8 per unit of average inventory. Every time an order is placed for more item X, it costs $16. a. Whenever item X is ordered, what should the order size be? (Round your answer to the nearest whole number.) Order size b. What is the annual cost for ordering item X? (Round your answer to 2 decimal places.) Ordering cost c. What is the annual cost for storing item X? (Round your answer to 2 decimal places.) Holding cost

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