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skully skully
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7 years ago
Tall Trees Incorporated is a distributor of swings. Toys'n'Tots is a local retail outlet which sells swings. Toys'n'Tots purchases the swings from Tall Trees Incorporated at $.80 per swing; the swings are shipped in cartons of 60. Tall Trees Incorporated pays all incoming freight, and Toys'n'Tots does not inspect the swings due to Tall Trees' reputation for high quality. Annual demand is 175,600 swings at a rate of 5,300 swings per week. The company earns 14% on its investments. The managerial accountant provided the following cost data:

Relevant ordering costs per purchase order   $150
Carrying costs per carton per year:
Relevant insurance, materials handling
breakage, etc., per year   $1.25

If Toys'n'Tots makes an order (1/12 of annual demand) once per month, what are the relevant total costs?
A) $16,209.64
B) $17,708.86
C) $19,380.90
D) $24,117.15
E) $42,768.90
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Managerial Accounting: Decision Making and Motivating Performance

Managerial Accounting: Decision Making and Motivating Performance


Edition: 1st
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Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh
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noitulovenoitulove
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7 years ago
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skully Author
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7 years ago
Thank you for answering correctly
Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh
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