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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
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
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