Very Technical Is a Firm That Sells Computing Equipment

question 123

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. Very Technical pays an annual holding cost of $6 per monitor. If Very Technical sells 1,000 computer monitors a year and they order 25 monitors, what is the total annual cost of the monitors?

• A)$4,075
• B)$3,150
• C)$5,025
• D)$7,250

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Definitions:

Operating Activities

Business activities directly related to the production and delivery of goods and services, which are the main revenue-producing activities of an enterprise.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specified period.

Financing Activities

Transactions and events where a business raises capital or repays funds to finance its operations and investments, typically involving debt, equity, and dividend payments.

Treasury Stock

Shares that were once part of the outstanding shares and have been subsequently reacquired by the issuing company and held in its own treasury.