Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which sells blank and recorded DVDs. DVD Mart purchases DVDs from Globe at $28.00 per DVD; DVDs are shipped in packages of 68. Globe pays all incoming freight, and DVD Mart does not inspect the DVDs due to Globe's reputation for high quality. Annual demand is 321,000 DVDs at a rate of 6100 DVDs per week. DVD Mart earns 11% on its cash investments. The purchase-order lead time is one week. The following cost data are available:
What are the relevant total costs?
Definitions:
Current Liabilities
Obligations that a company needs to pay off within one year or within the business's normal operating cycle.
Current Position Analysis
Current position analysis is a review of the operations, resources, and financial health to evaluate a company's current state.
Return
The income produced by an investment, typically expressed as a percentage of the investment’s cost.
Total Assets
The sum of all assets owned by a company, including cash, investments, equipment, and real estate.
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