Problem: Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are $8 per pound per year. Lead time for each order is 3 days, and the pepperoni itself costs $3.00 per pound. There are 200 working days in a year.
If she were to order 80 pounds of pepperoni at a time, what would be the total yearly costs, including the cost of the pepperoni?
- $12,820
- $21,820
- None of the other options are correct
- $13,410
- $15,412