Very Technical is a firm that sells computing equipment. It costs Very Technical $50 for each order of computer monitors and the variable cost of placing an order is $2 per monitor. If Very Technical sells 1,000 computer monitors a year and they order 25 monitors, what is the annual ordering cost of the monitors?
A) $4,000
B) $10,000
C) $2,500
D) $50,000
A) $4,000
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Planned investment spending, a component of aggregate demand, is equal to
A) fixed investment plus actual inventory investment. B) fixed investment plus unplanned inventory investment. C) fixed investment. D) fixed investment plus planned inventory investment.
All transaction deposits are included in
A) M1 only. B) M2 only. C) both M1 and M2. D) savings balances only.
Carol has just purchased a cereal she saw advertised on TV because of the health benefits contained in the ad. The TV ad is an example of
A) mass marketing. B) direct marketing. C) indirect marketing. D) interactive marketing.
When a firm earns economic profit
A) accounting profits are zero. B) market share has be capitalized. C) other firms enter the market. D) total revenue has been maximized.