Phelps Corporation's EOQ for Material A is 500 units. This EOQ is based on: Annual demand 5,000 units Ordering costs $12.50 Refer to Phelps Corporation. What are Phelps Corp's total annual ordering costs for Material A?
a. $6,000
b. $600
c. $125
d. $1,000
C
# of orders per year = 5,000/500 = 10 orders per year
10 orders per year * $12.50 = $125.00
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