Very Technical Is a Firm That Sells Computing Equipment

question 151

Multiple Choice

Very Technical is a firm that sells computing equipment. It costs Very Technical $125 for each order of computer monitors and the variable cost of placing an order is $10 per monitor. Very Technical pays an annual holding cost of $20 per monitor. If Very Technical sells 8,000 computer monitors a year and they order 1,000 monitors, what is the total annual cost of the monitors?

• A)$91,000
• B)$59,500
• C)$101,000
• D)$87,500

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Definitions:

Bureau of the Budget

A former agency of the U.S. government responsible for creating and managing the federal budget, now known as the Office of Management and Budget (OMB).

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