Question
Question 11 Sarah's Computer City sells 5,000 boxes of CD-RW compact discs per year. She determined that she pays $50 to process an order for
Question 11 Sarah's Computer City sells 5,000 boxes of CD-RW compact discs per year. She determined that she pays $50 to process an order for discs. Her purchase price is $6 for each box of discs and she has determined that storage costs for one year are 25 percent of the purchase price. What is her approximate economic order quantity?
| a. | 409 boxes | |
| b. | 289 boxes | |
| c. | 6,21 boxes | |
| d. | 577 boxes |
Question 12
Sarah's Computer City sells 5,000 boxes of CD-RW compact discs per year. She determined that she pays $50 to process an order for discs. Her purchase price is $6 for each box of discs and she has determined that storage costs for one year are 25 percent of the purchase price. What is her approximate total carrying cost?
| a. | $306 | |
| b. | $216 | |
| c. | $433 | |
| d. | $543 |
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Public Finance
Authors: Harvey S. Rosen
5th Edition
025617329X, 978-0256173291
