University Book Store Buys Women's Polo T-Shirts from a Supplier

Multiple Choice

University Book Store buys women's polo T-shirts from a supplier according to the price schedule shown below. The store sells 500,000 T-shirts each year. The annual carrying cost of T-shirts is 25 percent, and the ordering cost is $40. The lowest total annual acquisition cost for Book Store quantity is closest to (Due to possible differences in rounding, choose the closest answer.) :

A) $16,018,000
B) $16,018,708
C) $17,518,707
D) $16,258,000