Use the Information Below to Answer the Following Question(s)

question 140

Multiple Choice

Use the information below to answer the following question(s) .Movie Time is a distributor of DVDs.Video Mart is a local retail outlet which sells blank and recorded DVDs.Video Mart purchases DVDs from Movie Time at $5.00 each; the units are shipped in packages of 25.Movie Time pays all incoming freight, and Video Mart does not inspect the DVDs due to Movie Time's reputation for high quality.Annual demand is 104,000 DVDs at a rate of 2,000 units per week.Video Mart earns 15% on its cash investments.The purchase order lead time is one week.The following cost data are available:

-What are the total relevant inventory costs?

• A)$6,150.50
• B)$4,182.56
• C)$2.560.20
• D)$1,951.70
• E)$2,462.41

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Definitions:

Tippee

A person who receives undisclosed privileged information about a corporation from an insider.

Securities Act

Legislation regulating the issuance and trading of securities to protect investors against fraud.

Takeover Bid

An offer or proposal to buy a controlling stake or all of the shares of another company, often as a strategy for acquisition or merger.

Short-Form Prospectus

A simplified document that outlines the key features of a new issue of securities, making it easier for investors to understand.