Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Yansheng Pty Ltd is a distributor of DVDs. Yan Mart is a local retail outlet which sells blank and recorded DVDs. Yan Mart purchases tapes

image text in transcribed

Yansheng Pty Ltd is a distributor of DVDs. Yan Mart is a local retail outlet which sells blank and recorded DVDs. Yan Mart purchases tapes from Yansheng at $10.00 per DVD; DVDs are shipped in packages of 50. Yansheng pays all incoming freight, and Yan Mart does not inspect the DVDs due to Yansheng's reputation for high quality. Annual demand is 250,000 DVDs at a rate of 5,000 DVDs per week. Yan Mart earns 12% on its cash investments. The purchase-order lead time is one week. The following cost data is available: Relevant ordering costs per purchase order $150.50 Carrying costs per package per year: Relevant insurance, materials handling, breakage, etc., per year $ 2.50 What is the annual relevant ordering cost? $4,823.72 a. $4,732.70 b. $684.09 $969.72 None of the answers. e

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Standards And Audits For Ethics Management Systems The European Perspective

Authors: Josef Wieland

1st Edition

3642072925, 978-3642072925

More Books

Students also viewed these Accounting questions

Question

Derive equation of continuity in rectangular co-ordinates

Answered: 1 week ago