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19 0 out of 4 points Desmond Ltd. is a distributor of DVDs. Lach Company is a local retail outlet which sells recorded DVDs. Lach
19 0 out of 4 points Desmond Ltd. is a distributor of DVDs. Lach Company is a local retail outlet which sells recorded DVDs. Lach purchases DVDs from Desmond at $17 per DVD; DVDs are shipped in packages of 71. Desmond pays all incoming Xfreight, and Lach does not inspect the DVDs due to Desmond's reputation for high quality. Annual demand for Lach's DVD is 320649 units. Lach earns 11% on its cash investments. Lach's purchase-order lead time is one week. The following costs data are available for Lach Company: Relevant ordering costs per purchase order Carrying costs per package per year: Relevant insurance, materials handling, breakage, etc. $119 $8 Compute the total annual relevant ordering and carrying cost of Lach Company? Selected Answer: 36,035 Correct Answer: 12,301 50
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