DQuestion 1Scenario 14.1 - Vidalia OnionsWhen Vidalia onions are ready, the entire 13 county (plus parts of seven other counties) area inGeorgia where they are grown is devoted to the harvest, packaging and shipping of this delicacy. TheOnion Shack currently purchases 120,000 bags of onions each year at a price of $100 per bag (a bagis ten pounds). Onion Shack has historically purchased in lots of 3000 bags. Transit time and capacityvary as indicated in the table (lead time is 2 days more than transit time). The safety inventory thatOnion Shack requires is 30% of lead time demand and the holding cost for a bag is 15% of cost.4CarrierMashburn RailSylvia ExpressAnita EnterprisesSmith TruckingQuantityShipped (cwt)200+100+250+250+Quantityshipped (bags)2000+1000+2500+2500+Shipping cost Transit time($/cwt)$2.10$2.35$1.35$1.00(days)511 pts333continues to purchase 11 ptsUse Scenario 14.1 to determine the inventory holding cost of the Anita Enterprises option if theOnion Shack purchases 240,000 bags of Vidalia onions each year.$85,035O $61,740O $63,135O $72,99011 pts

1. Calculate the annual demand for bags of onions: Annual demand = 240,000 bags 2. Calculate the…

Answered: D Question 1 Scenario 14.1 - Vidalia…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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