Answer the Following Questions Using the Information Below:
Appleby Incorporated $\quad\quad\quad\$ 125.00$

question 56

Multiple Choice

Answer the following questions using the information below:
Appleby Incorporated is a distributor of golf balls.Kel's Golf Supplies is a local retail outlet which sells golf balls.Kel's purchases the golf balls from Appleby Incorporated at $0.75 per ball;the golf balls are shipped in cartons of 72.Appleby Incorporated pays all incoming freight,and Kel's Golf Supplies does not inspect the balls due to Appleby' reputation for high quality.Annual demand is 172 800 golf balls at a rate of 3322 balls per week.Kel's Golf Supplies earns 12% on its cash investments.The purchase-order lead time is one week.The following cost data are available:
Relevant ordering costs per purchase order $\quad\quad\quad\$ 125.00$
Carrying costs per carton per year:
Relevant insurance, materials handling,
breakage, etc,, per year $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\$ 0.77$
-Purchasing at the EOQ recommended level,what are the relevant total costs?

• A)$3000.00
• B)$2085.67
• C)$1500.00
• D)$2225.00

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Definitions:

Erosion

Erosion is the process by which natural forces like water, wind, ice, and gravity wear away rocks and soil, transporting them from one place to another.

Angle of Repose

The sharpest incline at which a specifically loose material remains stable without collapsing.

Talus Slope

A steep slope composed of loose rock fragments, that is, talus.

Scoria Cones

Small, steep-sided volcanic cones made of basaltic fragments and ash, typically formed around a single eruptive vent.