Carrie is the manager of the Bay Street Pharmacy.Carrie is considering implementing a security tag system to reduce the losses related to stolen goods at their store.The system Carrie is looking at currently costs $60 000 and is expected to be effective for 5 years.In order to justify the implementation of the security tag system,average theft per year should be at least

Question

Quizplus · Accepted Answer

Carrie needs to calculate the annual amount that the security tag system would save the store in stolen goods in order to justify the cost of the system. If we divide the cost of the system by the number of years it is expected to be effective, we get $60,000/5 = $12,000 per year. This means that if the store is losing at least $12,000 per year in stolen goods, then it would be worth implementing the security tag system. Any amount less than $12,000 per year would not justify the cost of the system. Therefore, option B is the best choice.

Carrie Is the Manager of the Bay Street Pharmacy