Video Images is a distributor of DVDs. Quick-Disk Mart is a local retail outlet which sells blank and recorded DVDs. Quick-Disk Mart purchases tapes from Video Images at $3.00 per DVD. DVDs are shipped in packages of 20. Video Images pays all incoming freight, and Quick-Disk Mart does not inspect the DVDs due to Video Images reputation for high quality. Annual demand is 104,000 DVDs at a rate of 4,000 DVDs per week. Quick-Disk Mart earns 20% on its cash investments. The purchase-order lead time is two weeks. The following cost data are available: 
What is the required annual return on investment per package?
Definitions:
Retained Earnings
The amount of net earnings remaining for the company after distributing dividends to its shareholders.
Shareholders' Equity
The ownership interest of shareholders in a company, calculated as the company's total assets minus its total liabilities.
Appropriations
The act of setting aside funds for a specific purpose, often used in government budgeting.
Contra-Asset
An account on a company's balance sheet that reduces the value of related, primary asset accounts.
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