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Steve's Shop Sells Seashells by the Seashore

Question 18

Multiple Choice

Steve's shop sells seashells by the seashore.Steve buys shells from local collectors for an average price of $0.50 per shell.Steve sells on average 1,000 shells each month.Each time he orders shells from collectors,there is a $20 shipping and handling fee.Steve estimates a unit holding cost of $0.50 per shell per year (many of them get broken if held in inventory too long) .How often should Steve order seashells?


A) about three times per month
B) about one time each month
C) about one time every other month
D) about one time each year

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