Sarah's Computer City Sells 5,000 Boxes of CD- RW Compact

question 10

Multiple Choice

Sarah's Computer City sells 5,000 boxes of CD- RW compact discs per year.She determined that she pays $50 to process an order for discs.Her purchase price is $6 for each box of discs and she has determined that storage costs for one year are 25 percent of the purchase price.What is her approximate total carrying cost?

• A)$216.75
• B)$306.75
• C)$432.75
• D)2,167.50
• E)$4,327.50

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Definitions:

Trading Volume

The total quantity of shares or contracts traded for a specific security or market during a specified period.

General Claim

A broad assertion or demand for rights, money, or property without specificity or restriction.

Collateral Bond

A type of bond that is secured by a specific pledge of collateral.

Debenture

An unsecured bond that relies on the creditworthiness and reputation of the issuer, without collateral.