Question 13

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 ordering cost?

	a.	$433
	b.	$287
	c.	$611
	d.	$143

Question 14

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. Sarah's vendor said that if she purchased 1,000 boxes at a time, she would receive a 10 percent discount. What is her total cost with the discount if the formula for total cost is TC = DP + + ?

	a.	$30,866
	b.	$27,866
	c.	$27,925
	d.	$28,000