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

Question 2

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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 costs assuming the quantity ordered equals 80 reams? A)  $3,913.65 B)  $3,948.50 C)  $4,075.25 D)  $4,165.00 E)  $5,326.49
-What are the total relevant costs assuming the quantity ordered equals 80 reams?


A) $3,913.65
B) $3,948.50
C) $4,075.25
D) $4,165.00
E) $5,326.49

Correct Answer:

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