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1. Sarah D sells 10,400 CDs every year. Digisound whosales them to her for $3.50 for orders in excess of 250 CDs and $4.00 for

1. Sarah D sells 10,400 CDs every year. Digisound whosales them to her for $3.50 for orders in excess of 250 CDs and $4.00 for smaller orders. There is a $10.00 processing charge for each shipment, regardless of size. Sarah finances her order on her Mastercard with an annual rate of 20%. NYS has a real property tax of 5% on annual inventory value. Sara currently buys 200 CDs every week. Evaluate Sarah's current inventory management. Give her a better inventory management plan if there is a better one.

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