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

question 40

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 ordering cost?

• A)$865
• B)$43
• C)$87
• D)$433
• E)$611

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Definitions:

Market For Nachos

An economic environment where buyers and sellers engage in transactions involving nachos, reflecting the principles of supply and demand.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specified period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level within a specified time period.

Economic Theory

A set of principles and models that explains how economies operate and how economic agents interact.