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 $29.00 per DVD;DVDs are shipped in packages of 65.Globe pays all incoming freight,and DVD Mart does not inspect the DVDs due to Globe's reputation for high quality.Annual demand is 321,000 DVDs at a rate of 6800 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 carrying costs?
A) $9362
B) $9209
C) $849
D) $6511
Correct Answer:
Verified
Correct Answer:
Verified
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