Answer: Option (C)
Explanation:
Under single-period inventory model,
Overage cost = Cost/unit - Salvage value/unit
Single-period inventory model is referred to as or known as a business situation faced by the organization that tends to order seasonal items. There tends to be the costs which occur to both ordering too little or too much, and thus organization's managers tries to get its order correct for the first time in order to minimize chances of loss.
