TeeMeUp,an online retailer of t-shirts,orders 150,000 t-shirts per year from its manufacturer.The cost of ordering and delivery is $125 per order.If the firm orders 5,000 t-shirts in each order,what are the firm's total annual ordering costs (rounded to the nearest dollar)?

Question

Quizplus · Accepted Answer

The total annual ordering cost is calculated by dividing the annual demand (150,000 t-shirts) by the order size (5,000 t-shirts per order) and then multiplying by the cost per order ($125). This results in (150,000 / 5,000) * $125 = 30 * $125 = $3,750.

TeeMeUp,an Online Retailer of T-Shirts,orders 150,000 T-Shirts Per Year from Its