Very Technical Is a Firm That Sells Computing Equipment

question 162

Multiple Choice

Very Technical is a firm that sells computing equipment. It costs Very Technical $50 for each order of computer monitors and the variable cost of placing an order is $2 per monitor. If Very Technical sells 1,000 computer monitors a year and they order 25 monitors, what is the annual ordering cost of the monitors?

• A)$50,000
• B)$4,000
• C)$2,500
• D)$10,000

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Definitions:

Oil Refineries

Industrial plants where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel, and jet fuel.

Long-Linked Technology

Service technology in which a client moves from point to point during service delivery.

Service Delivery

The manner in which a company provides services to its customers, focusing on quality, efficiency, and overall customer satisfaction.

Mass Production

A manufacturing method that produces large quantities of standardized products, often using assembly lines or automated technology, to achieve economies of scale.