Answer the Following Questions Using the Information Below:
Computer Supplies $\quad\quad\$ 94.50$

question 53

Multiple Choice

Answer the following questions using the information below:
Computer Supplies is a distributor of DVDs.Music 4U is a local retail outlet which sells blank and recorded DVDs.Music 4U purchases DVDs from Computer Supplies at $0.25 per DVD;DVDs are shipped in packages of 100.Computer Supplies pays all incoming freight,and Music 4U does not inspect the DVDs due to Computer Supplies' reputation for high quality.Annual demand is 416 000 DVDs at a rate of 8000 DVDs per week.Music 4U earns 15% on its cash investments.The purchase-order lead time is one week.The following cost data are available:
Relevant ordering costs per purchase order $\quad\quad\$ 94.50$
Carrying costs per package per year:
Relevant insurance, materials handling,
breakage, etc, per year $\quad\$ 3.50$
-How many deliveries will be made during each time period?

• A)12.6 deliveries
• B)32.0 deliveries
• C)26.0 deliveries
• D)29.4 deliveries

---

Definitions:

Systematic Mistakes

Errors that consistently occur due to inherent flaws in logic, procedure, or bias.

Paycheck

A paper document or electronic transfer issued by an employer to pay an employee for services rendered.

Inertia

A tendency to do nothing or to remain unchanged, often used metaphorically to describe economic or financial systems' resistance to change.

Economic Models

Simplified representations of complex economic processes used to predict and analyze economic behaviors and outcomes.