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Cycles De Oro Produces 120,000 High-Tek Bikes a Year and Orders

Question 58

Multiple Choice

Cycles de Oro produces 120,000 high-tek bikes a year and orders the brake assembly from IKON for $15.40 each.The order cost is $84 and Cycles estimates their inventory carrying costs are 15%.What is their total ordering cost per year?


A) $7,968
B) $3,412
C) $4,118
D) $6,437

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