Answer the Following Question(s)using the Information Below

question 161

Multiple Choice

Answer the following question(s) using the information below:
Garry's Golf Supplies is a local retail outlet which sells golf balls.Garry's purchases the golf balls from Green Grass Incorporated at $0.75 per ball; the golf balls are shipped in cartons of 72, FOB destination.Annual demand is 172,800 golf balls at a rate of 3,322 balls per week.Garry's Golf Supplies earns 12% on its cash investments.The purchase order lead time is one week.The following cost data are available:

-If Garry's Golf Supplies makes an order (1/12 of annual demand) once per month, what are the relevant total costs?

• A)$1,500.00
• B)$2,085.67
• C)2,225.00
• D)$3,000.00
• E)$680.00

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Definitions:

Noncompetition Provision

A clause in a contract that prohibits an individual from entering into or starting a similar profession or trade in competition against another party, typically an employer, for a certain period of time and within a specific geographic area.

Successor Company

A company or entity that takes over the operations, assets, and liabilities of another company, typically through merger or acquisition.

Assignable

Refers to a right or duty that can be transferred from one party to another.

Delegable

Capable of being entrusted or assigned to another person, typically referring to duties or responsibilities that can be transferred to others.