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Consider the Following Data Supplied by Cotton Tops,a T-Shirt Distributor

Question 34

Multiple Choice

Consider the following data supplied by Cotton Tops,a t-shirt distributor: Consider the following data supplied by Cotton Tops,a t-shirt distributor: The manager charges equipment set-up costs as a separate cost to the purchase price of $4.92 per t-shirt.Calculate the total inventory costs if the manufacturer offered Cotton Tops a 2 per cent quantity discount for orders of 10 000 or more and Cotton Tops' economic order quantity is 10 000 units. A) $8625 B) $7395 C) $11 740 D) $13 260
The manager charges equipment set-up costs as a separate cost to the purchase price of $4.92 per t-shirt.Calculate the total inventory costs if the manufacturer offered Cotton Tops a 2 per cent quantity discount for orders of 10 000 or more and Cotton Tops' economic order quantity is 10 000 units.


A) $8625
B) $7395
C) $11 740
D) $13 260

Correct Answer:

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