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

question 39

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. Sarah's vendor said that if she purchased 1,000 boxes at a time, she would receive a 10 percent discount. What is her total cost if she orders her Economic Order Quantity without the discount if the formula for total cost is TC = DP +QIP/2 +DS/Q ?

• A) $30,866
• B) $28,000
• C) $27,925
• D) $27,866

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Definitions:

Method

A method is a block of code defined within a class in object-oriented programming that performs a specific task.

Finally Block

A block of code in many programming languages that is executed after a try block, regardless of whether an exception was thrown or caught.

Try Block

A block of code in programming that is used to encapsulate a segment where exceptions might occur, allowing for exceptions to be caught and handled.

Execution

The process of running a program or command, whereby the code is carried out by the computer's CPU.