Multiple Choice
Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which sells blank and recorded DVDs. DVD Mart purchases DVDs from Globe at $25.00 per DVD; DVDs are shipped in packages of 63. Globe pays all incoming freight, and DVD Mart does not inspect the DVDs due to Globe's reputation for high quality. Annual demand is 314,000 DVDs at a rate of 6600 DVDs per week. DVD Mart earns 15% on its cash investments. The purchase-order lead time is one week. The following cost data are available:
What are the annual relevant ordering costs?
A) $91,977
B) $11,949
C) $8449
D) $8353
Correct Answer:
Verified
Correct Answer:
Verified
Q40: If Kenton Inc. has a safety stock
Q41: The following information applies to Krynton Corp.
Q42: Which of the following statements best defines
Q43: Short Grass Incorporated is a distributor of
Q44: The IBP Grocery orders most of its
Q46: The Jarvis Corporation produces bucket loader assemblies
Q47: Just-in-time purchasing describes the flow of goods,
Q48: The economic order quantity model completely ignores
Q49: The demand-pull feature of JIT production systems
Q50: Which of the following statements is true