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Mart is a Ds. DVD Mart purchases tapes from Digital Good kages of 25. Digital Goods pays all incoming freig igital Goods' reputation for high quality. Annual veek. DVD Mart earns 15% on its cash investm Following cost data are available: ant ordering costs per purchase order $94.54 ng costs per package per year:.

Mart is a Ds. DVD Mart purchases tapes from Digital Good kages of 25. Digital Goods pays all incoming freig igital Goods' reputation for high quality. Annual veek. DVD Mart earns 15% on its cash investm Following cost data are available: ant ordering costs per purchase order $94.54 ng costs per package per year:.

FINANCIAL ACCOUNTING
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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Digital Goods is a distributor of DVDs. DVD Mart is a local retail outlet which sels bar DVDs, DVD Mart purchases tapes from Digital Goods at $10.00 per DVD, DVDS ats packages of 25. Digital Goods pays all incoming freight, and DVD Mart does not inspect to Digital Goods' reputation for high quality. Annual demand is 208,000 DVDs at a rate of 4500 DVDs per week. DVD Mart earns 15% on its cash investments. The purchase-order lead time is one week The following cost data are available: Relevant ordering costs per purchase order $94.50 Carrying costs per package per year:. Relevant insurance, materials handling, breakage, etc., per year $ 3.50 How many deliveries will be made during each time period? O O 53.8 deliveries 138.0 deliveries O 72.0 deliveries O 42.4 deliveries
Transcribed Image Text:Digital Goods is a distributor of DVDs. DVD Mart is a local retail outlet which sels bar DVDs, DVD Mart purchases tapes from Digital Goods at $10.00 per DVD, DVDS ats packages of 25. Digital Goods pays all incoming freight, and DVD Mart does not inspect to Digital Goods' reputation for high quality. Annual demand is 208,000 DVDs at a rate of 4500 DVDs per week. DVD Mart earns 15% on its cash investments. The purchase-order lead time is one week The following cost data are available: Relevant ordering costs per purchase order $94.50 Carrying costs per package per year:. Relevant insurance, materials handling, breakage, etc., per year $ 3.50 How many deliveries will be made during each time period? O O 53.8 deliveries 138.0 deliveries O 72.0 deliveries O 42.4 deliveries
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