Use the Following to Answer the Questions Below

question 96

Multiple Choice

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

-Refer to the instruction above.What are the annual inventory costs if the lower inventory cost supplier is selected?

• A)$56,550
• B)$96,500
• C)$21,450
• D)$7,800

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and responsibilities.

Vote

To express a choice or decision in an election, meeting, or other decision-making process through a ballot, show of hands, or other means.

Plan of Merger

A detailed proposal outlining the terms, conditions, and process of merging one company with another.

Sufficient Information

The adequate amount of data or facts necessary to facilitate decision-making or to fulfill a specific requirement.