Cindy's Toys has an average inventory of 1,800 teething rings. The carrying cost per unit per year is 5. Cindy places an order for 3,600 teething rings on the first of each month and the order cost is $25. What are the total restocking costs using the EOQ?

A) $45
B) $90
C) $164
D) $300
E) $390

Average Inventory

The mean value of inventory held by a company over a specific period of time, calculated to assess inventory levels and management efficacy.

Carrying Cost

Expenses associated with holding inventory, including storage, insurance, and depreciation.

EOQ

Economic Order Quantity, a formula used to determine the optimal quantity of stock to order that minimizes total inventory costs.