QUESTION 33 5 points Save Answer The Tangent Corporation wants to move 500 freez
ID: 366879 • Letter: Q
Question
QUESTION 33 5 points Save Answer The Tangent Corporation wants to move 500 freezers this year from its plant to its warehouse and then to its own retail store. Freezer demand at the locall retail store has averaged 4 units per working day. The plant shipped 10 shipments of 50 units each to the warehouse over the course of the year and shipments of 4 units to the retailer. The following data has been colected PRODUCT CHARACTERISTICS Selling Price- Variable Manufacturing Cost Product Weign- Product Size- COMMUNICATIONS (ORDER) COST The anual order cost is froms manufacture to warehouse is $5,000/Freezer $3.000/Freeer 700 LBS 100 Cubic Feet per Unit $75 per Warehouse Replenishment Onder/ $10 per Retail Ordlr(Shipment) O A $75 O B.$750 O C $1,500 D. $2.000 o E $3,750Explanation / Answer
Annual order cost = Number of Shipment x Ordering cost
Number of shipment from plant to warehouse = 10 shipment per year
Ordering cost for warehouse = $75 per shipment
Annual order cost from manufacture to warehouse = 10 x 75 = 750
Annual order cost from manufacture to warehouse = $750
ANS: B.