Final answer:
The total cost to order and carry 10 units of the product for 1 year includes a $200 ordering cost, $250 for purchasing the 10 units, and $200 for carrying them, which totals to $650. The provided options do not include this total, indicating a potential error in the question or available choices.
Step-by-step explanation:
To calculate the total cost to order and carry 10 units of the product for 1 year, we must consider both the ordering cost and the carrying cost. The ordering cost is a flat rate, so it doesn't change with the number of units ordered. Since the cost to order is $200, this will be part of our total. The cost per unit is $25, and for carrying each unit in inventory for a year it is $20.
For 10 units, the purchase cost is 10 units × $25/unit = $250. The carrying cost is 10 units × $20/unit = $200 for one year. Therefore, the total combined cost for ordering and carrying 10 units for 1 year is $200 (ordering) + $250 (purchase) + $200 (carrying) = $650.
It appears there may have been a mistake as this total is not listed in the options provided. It is important to review the figures and the calculations again to ensure accuracy.