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Office Supply House purchases 4,160 reams of paper per year, ordered in lots of 80 reams per week at $150 per ream The vendor covers

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Office Supply House purchases 4,160 reams of paper per year, ordered in lots of 80 reams per week at $150 per ream The vendor covers all shipping costs. Office Supply House is not required to inspect the shipment upon entry. Office Supply House earns 20% on its cash investments. The purchase order lead time is two weeks. The following cost data are available: Relevant ordering costs per purchase order $53.75 akage, and so on, per year S4.25 What are the total relevant costs assuming the quantity ordered equals 80 reams? $3,91365 $3,948.50 $4,075.25 $4,165.00

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