Explanation:
The computation is shown below:
a. For one computer, the cost of inventorying a single item is
= Total cost รท Number of inventory items
where,
total cost is $100 + $25 = $125
And, the number of inventory items is 100
So, the cost of inventorying a single item is
= $125 รท 100 items
= $1.25
b. Now for two workers, it is
= Total cost รท Number of inventory items
where,
total cost is $100 + $25 + $25 = $125
And, the number of inventory items is 150
So, the cost of inventorying a single item is
= $150 รท 150 items
= $1
For three, it would be
= Total cost รท Number of inventory items
where,
total cost is $100 + $25 + $25 + $25 = $175
And, the number of inventory items is 160
So, the cost of inventorying a single item is
= $175 รท 160 items
= $1.09375
So we can choose the two workers for minimizing the cost