Specialty Manufacturing requires 5400 gadgets per year for production. The firm decides to order 120 gadgets at a time. The costs of ordering are $50 per order and carrying costs per gadget are $2. Annual ordering costs are:

A) $1296.
B) $2250.
C) $2940.
D) $2000.

Ordering Costs

Expenses incurred in placing and receiving orders from suppliers, including costs related to the processing and handling of orders.

Carrying Costs

The total cost of holding inventory, including storage, insurance, taxes, and opportunity costs, among others.

Annual Ordering

Refers to the total cost and process associated with placing orders for goods or materials over the course of a year.