A Company Estimates That Ordering Costs Are $3

question 36

Multiple Choice

A company estimates that ordering costs are $3.20 per order, picking costs are $2.15 per unique item ordered, packing costs are $0.04 per item, and return costs are $15.00 per return.A customer orders $8,440 worth of goods with direct costs of $5,200.The customer places 85 orders, orders 72 unique items, 450 total items, and makes 5 returns.What is the customer profit?

• A)$519.60
• B)$3,240
• C)$2,720.20
• D)$7,920.20

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Definitions:

Interest Rate

The segment of a loan that is applied as interest to the borrower, frequently described as an annual percentage of the unsettled loan.

Future Amount

The value of an investment or loan at a specified time in the future, calculated by applying interest rates or growth factors.

Rate of Return

Rate of Return is the gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Investor

An individual or entity that commits capital with the expectation of receiving financial returns.