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Use the Information Below to Answer the Following Question(s)

Question 1

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Use the information below to answer the following question(s) .
Office Supply House purchases 4,160 reams of paper per year, ordered in lots of 80 reams per week at $150 per ream. The vendor covers all shipping costs. Office Supply House is not required to inspect the shipment upon entry. Office Supply House earns 20% on its cash investments. The purchase order lead time is two weeks. The following cost data are available:
Use the information below to answer the following question(s) . Office Supply House purchases 4,160 reams of paper per year, ordered in lots of 80 reams per week at $150 per ream. The vendor covers all shipping costs. Office Supply House is not required to inspect the shipment upon entry. Office Supply House earns 20% on its cash investments. The purchase order lead time is two weeks. The following cost data are available:    -What are the total relevant inventory costs at the economic order quantity? A)  $3,913.65 B)  $3,948.50 C)  $4,975.86 D)  $6,238.62 E)  $4,862.84
-What are the total relevant inventory costs at the economic order quantity?


A) $3,913.65
B) $3,948.50
C) $4,975.86
D) $6,238.62
E) $4,862.84

Correct Answer:

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