Business, 26.08.2019 16:30 gabbys2002
Video images is a distributor of dvds. quick-disk mart is a local retail outlet which sells blank and recorded dvds. quick-disk mart purchases tapes from video images at $3.00 per dvd. dvds are shipped in packages of 20. video images pays all incoming freight, and quick-disk mart does not inspect the dvds due to video images reputation for high quality. annual demand is 104,000 dvds at a rate of 4,000 dvds per week. quick-disk mart earns 20% on its cash investments. the purchase-order lead time is two weeks. the following cost data are available: relevant ordering costs per purchase order $90.50 carrying costs per package per year: relevant insurance, materials handling, breakage, etc., per year $ 4.50 what is the required annual return on investment per package? a. $12.00 b. $2.50 c. $60.00 d. $0.60
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Video images is a distributor of dvds. quick-disk mart is a local retail outlet which sells blank an...
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