Q 29

Tom Paper Inc purchases 23,500 reams of paper per year, ordered in lots of 450 reams per week at $100 per ream. The vendor covers all shipping costs. Torn Paper is not required to inspect the shipment upon entry. Torn Paper earns 8% on its cash investments. The purchase order lead time is two weeks. The following cost data are available Relevant ordering costs per purchase order Relevant insurance, materials handling, breakage, and so on, per year $23.50 $12.00 What are the total relevant costs assuming the quantity ordered equals 200 reams? O A. $4,165.00 OB. $4,761.25 OC. $4.920.50 OD. $4,075.25 O E. $5.975.50