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Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which sells blank and recorded DVDs. DVD Mart purchases DVDs from
Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which sells blank and recorded DVDs. DVD Mart purchases DVDs from Globe at \$30 per DVD; DVDs are shipped in packages of 68 . Globe pays all incoming freight, and DVD Mart does not inspect the DVDs due to Globe's reputation for high quality. Annual demand is 312,000 DVDs at a rate of 6,900 DVDs per week. DVD Mart earns 11% on its cash investments. The purchase - order lead time is one week. The following cost data are available: What are the annual relevant carrying costs? A. $7,907 B. $733 C. $5,591 D. $8,072
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