Final answer:
The total inventory cost for the company can be calculated by multiplying the carrying cost per unit by the number of units ordered per month and adding the fixed order cost.
Step-by-step explanation:
The total inventory cost for the company can be calculated by multiplying the carrying cost per unit by the number of units ordered per month and adding the fixed order cost. In this case, the carrying cost per unit is $1.0 and the number of units ordered per month is 8,000. The fixed order cost is $70 per order.
Total Inventory Cost = (Carrying Cost per Unit * Number of Units Ordered) + Fixed Order Cost
Total Inventory Cost = ($1.0 * 8,000) + $70
Total Inventory Cost = $8,000 + $70 = $8,070