Answer the Following Questions Using the Information Below:
Short Grass

question 61

Multiple Choice

Answer the following questions using the information below:
Short Grass Incorporated is a distributor of golf balls. Martin's Golf Supplies is a local retail outlet which sells golf balls. Martin's purchases the golf balls from Short Grass Incorporated at $0.75 per ball; the golf balls are shipped in cartons of 72. Short Grass Incorporated pays all incoming freight, and Martin's Golf Supplies does not inspect the balls due to Short Grass' reputation for high quality. Annual demand is 155,520 golf balls at a rate of 2,991 balls per week. Martin's Golf Supplies earns 12% on its cash investments. The purchase-order lead time is one week. The following cost data are available:
$\begin{array} { l } \text { Relevant ordering costs per purchase order}&\$125.00 \\ \text {arrying costs per carton per year: }& \\ \text {Relevant insurance, materials handling, }& \\ \text {breakage, etc., per year }&\$0.77 \\\end{array}$

-Purchasing at the EOQ recommended level,what are the relevant total costs?

• A) $1,500.00
• B) $1,978.60
• C) $989.37
• D) $3,000.00

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Definitions:

Legitimate Power

The power a person receives as a result of their position in the formal hierarchy of an organization.

Referent Power

A form of influence based on the charisma and interpersonal appeal of the power-holder, rather than on formal positions or commands.

Virtuous Power

Power exercised with moral integrity and for the greater good, often characterized by fairness, justice, and a concern for others' well-being.

Bertrand Russell

A British philosopher, logician, mathematician, historian, writer, and social critic, known for his work in mathematical logic and analytic philosophy.